Luye Pharma Hong Kong and AstraZeneca have entered into a US$546 million agreement on the acquisition of AstraZeneca’s antidepressant medicines – a complex transaction that required well co-ordinated cross-border legal work.
AstraZeneca agreed to transfer and license to Luye Pharma the assets and rights related to Seroquel and Seroquel XR – atypical anti-psychotic medicines with antidepressant properties – in 51 countries and regions including the UK, China, Australia, South Korea, Thailand, Malaysia, Saudi Arabia, Mexico, Argentina, South Africa and Brazil.
“Cross-border M&A requires lead counsel not only to have a wealth of experience and professional capability, but also to co-ordinate with counsel from different jurisdictions and practice areas,” Huang Jianwen, a partner at King & Wood Mallesons in Beijing, told Asia Business Law Journal.
“For example, this project involved 51 countries and regions, and practical areas such as corporate, antitrust, intellectual property and tax. Within the limited time, counsel from our London, Beijing and Shanghai offices co-operated smoothly and presented our best solution to achieve a successful outcome for our client.”
The purchase price for the transferred and licensed rights and assets is US$546 million, and is payable in four instalments. The transaction is expected to close mid-year, subject to customary closing conditions.
The transferred assets/rights included manufacturing know-how, marketing authorizations, product records, regulatory information, patents and domain names. The licensed assets/rights included trademarks, know-how, product records and regulatory information.
King & Wood Mallesons’ cross-border team advised Luye Pharma on its transaction. The team was led by Huang Jianwen. The London team was led by partners Greg Stonefield and Barri Mendelsohn. Luye Pharma believes that the acquisition of Seroquel and Seroquel XR will assist its further expansion in domestic and global markets.