Astellas Pharma Inc. (Astellas) (TSE: 4503), a Japan-based pharmaceutical company, announced on Monday that it has entered into an Asset Purchase Agreement with Sandoz AG, a Swiss-based global company involved in generic pharmaceuticals and biosimilars.

Under the Asset Purchase Agreement, Astellas is to transfer the global product rights for antifungal agent MYCAMINE (micafungin sodium/product name in Japan: FUNGUARD). The contract is part of the company's ongoing efforts to optimise the allocation of management resources to accommodate the rapidly changing business environment and achieve sustainable growth.

A payment of USD62.5m to USD75m will be received upfront, depending on the date of the closing of the transaction, and potential sales-based milestone payments. Financial terms of the contract will be reported as a gain on divestiture of intangible assets.

Sandoz is to acquire the rights to sell MYCAMINE worldwide when the deal is completed.