Agreement builds on 2016 collaboration on commercialisation rights to
anaesthetic medicines in markets outside the US

AstraZeneca today announced that it has entered into an agreement with
Aspen Global Incorporated (AGI), part of the Aspen Group, under which
AGI will now acquire the residual rights to the established
anaesthetic medicines comprising of Diprivan, EMLA,
Xylocaine/Xylocard/Xyloproct, Marcaine, Naropin, Carbocaine and
Citanest.

AstraZeneca entered into an agreement
(https://www.astrazeneca.com/media-centre/press-releases/2016/astrazeneca-enters-commercialisation-agreement-with-aspen-for-anaesthetic-medicines-portfolio-08062016.html)
with AGI in June 2016, under which AGI gained the exclusive
commercialisation rights to the medicines in markets outside the US.
Under the terms of the new agreement, AGI will now acquire the
remaining rights to the intellectual property and manufacturing
know-how related to the anaesthetic medicines for an upfront
consideration of $555 million. Additionally, AGI will pay AstraZeneca
up to $211 million in performance-related milestones based on sales
and gross margin during the period from 1 September 2017 to 30
November 2019. AstraZeneca will continue to manufacture and supply
the medicines to AGI during a transition period of up to five years.

Mark Mallon, Executive Vice President, Global Product and Portfolio
Strategy, AstraZeneca said: "AstraZeneca, AGI and patients have all
benefitted from the successful commercial agreement we established
last year. As our relationship has evolved, AGI has shown that it is
in a strong position to maximise the value and reach of the
anaesthetic medicines through its extensive commercial network.
Disposing the remaining rights to the medicines allows both companies
to benefit from greater efficiencies as AstraZeneca continues to
focus our resources on our three main therapy areas."

Stephen Saad, Group Chief Executive, Aspen, said: "This second
transaction allows AGI to reap the additional benefits from the
excellent strategic acquisition that the anaesthetics portfolio has
proven to be for Aspen and a key part of this will be to continue
leveraging the strong working relationship that AGI has developed
with AstraZeneca."

Financial considerations

Under the terms of the original agreement, entered into in June 2016,
AGI made an upfront payment to AstraZeneca of $520 million and agreed
to make future Product Sales-related payments of up to $250 million
(see first payment below), as well as paying double-digit percentage
royalties on Product Sales. AstraZeneca agreed to continue to
manufacture and supply the medicines to AGI on a cost-plus basis for
an initial period of 10 years.

The new agreement does not impact the first Product Sales-related
payment of $150 million due to AstraZeneca, for which the contingent
terms have now been met. This income will be recorded as
Externalisation Revenue in the Company's financial statements in the
third quarter of 2017.

Under the new agreement, AGI will no longer pay royalties to
AstraZeneca. The remaining $100 million Product Sales-related payment
from the original agreement will be made to AstraZeneca in 2018, if
the contingent terms are met, and will be recorded as Other Operating
Income to reflect the reduced ongoing interest in the medicines as a
result of the new agreement.

Further, as AstraZeneca will transition the manufacture and supply of
the medicines to AGI, and therefore will have a reduced ongoing
interest, the $555 million upfront and up to $211 million sales and
gross margin-related payments from the new agreement will also be
recorded as Other Operating Income in the Company's financial
statements.

The new, additional agreement is expected to close in the fourth
quarter of 2017, subject to customary closing conditions and
regulatory clearances. It does not impact AstraZeneca's financial
guidance for 2017.

About AstraZeneca

AstraZeneca is a global, science-led biopharmaceutical company that
focuses on the discovery, development and commercialisation of
prescription medicines, primarily for the treatment of diseases in
three main therapy areas - Oncology, Cardiovascular & Metabolic
Diseases and Respiratory. The Company also is selectively active in
the areas of autoimmunity, neuroscience and infection. AstraZeneca
operates in over 100 countries and its innovative medicines are used
by millions of patients worldwide.

For more information, please visit www.astrazeneca.com and follow us
on Twitter @AstraZeneca.

AstraZeneca today announced that it has entered into an agreement with
Aspen Global Incorporated (AGI), part of the Aspen Group, under which
AGI will now acquire the residual rights to the established
anaesthetic medicines comprising of Diprivan, EMLA,
Xylocaine/Xylocard/Xyloproct, Marcaine, Naropin, Carbocaine and
Citanest.

AstraZeneca entered into an agreement
(https://www.astrazeneca.com/media-centre/press-releases/2016/astrazeneca-enters-commercialisation-agreement-with-aspen-for-anaesthetic-medicines-portfolio-08062016.html)
with AGI in June 2016, under which AGI gained the exclusive
commercialisation rights to the medicines in markets outside the US.
Under the terms of the new agreement, AGI will now acquire the
remaining rights to the intellectual property and manufacturing
know-how related to the anaesthetic medicines for an upfront
consideration of $555 million. Additionally, AGI will pay AstraZeneca
up to $211 million in performance-related milestones based on sales
and gross margin during the period from 1 September 2017 to 30
November 2019. AstraZeneca will continue to manufacture and supply
the medicines to AGI during a transition period of up to five years.

Mark Mallon, Executive Vice President, Global Product and Portfolio
Strategy, AstraZeneca said: "AstraZeneca, AGI and patients have all
benefitted from the successful commercial agreement we established
last year. As our relationship has evolved, AGI has shown that it is
in a strong position to maximise the value and reach of the
anaesthetic medicines through its extensive commercial network.
Disposing the remaining rights to the medicines allows both companies
to benefit from greater efficiencies as AstraZeneca continues to
focus our resources on our three main therapy areas."

Stephen Saad, Group Chief Executive, Aspen, said: "This second
transaction allows AGI to reap the additional benefits from the
excellent strategic acquisition that the anaesthetics portfolio has
proven to be for Aspen and a key part of this will be to continue
leveraging the strong working relationship that AGI has developed
with AstraZeneca."

Financial considerations

Under the terms of the original agreement, entered into in June 2016,
AGI made an upfront payment to AstraZeneca of $520 million and agreed
to make future Product Sales-related payments of up to $250 million
(see first payment below), as well as paying double-digit percentage
royalties on Product Sales. AstraZeneca agreed to continue to
manufacture and supply the medicines to AGI on a cost-plus basis for
an initial period of 10 years.

The new agreement does not impact the first Product Sales-related
payment of $150 million due to AstraZeneca, for which the contingent
terms have now been met. This income will be recorded as
Externalisation Revenue in the Company's financial statements in the
third quarter of 2017.

Under the new agreement, AGI will no longer pay royalties to
AstraZeneca. The remaining $100 million Product Sales-related payment
from the original agreement will be made to AstraZeneca in 2018, if
the contingent terms are met, and will be recorded as Other Operating
Income to reflect the reduced ongoing interest in the medicines as a
result of the new agreement.

Further, as AstraZeneca will transition the manufacture and supply of
the medicines to AGI, and therefore will have a reduced ongoing
interest, the $555 million upfront and up to $211 million sales and
gross margin-related payments from the new agreement will also be
recorded as Other Operating Income in the Company's financial
statements.

The new, additional agreement is expected to close in the fourth
quarter of 2017, subject to customary closing conditions and
regulatory clearances. It does not impact AstraZeneca's financial
guidance for 2017.

About AstraZeneca

AstraZeneca is a global, science-led biopharmaceutical company that
focuses on the discovery, development and commercialisation of
prescription medicines, primarily for the treatment of diseases in
three main therapy areas - Oncology, Cardiovascular & Metabolic
Diseases and Respiratory. The Company also is selectively active in
the areas of autoimmunity, neuroscience and infection. AstraZeneca
operates in over 100 countries and its innovative medicines are used
by millions of patients worldwide.

For more information, please visit www.astrazeneca.com and follow us
on Twitter @AstraZeneca.

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