the times | Wednesday December 2 2020 1GM 47
Business
An old blockbuster anti-cholesterol
drug that was once a crucial driver of
profits has been sold by Astrazeneca.
The Anglo-Swedish drugs company
has agreed to sell the rights to Crestor in
more than 30 countries in Europe,
excluding the UK and Spain, to
Grünenthal, of Germany, for up to
$350 million.
Crestor has generated revenues
estimated at more than $55 billion for
Astra since it was launched in 2003,
accounting for about a fifth of group
revenue at its peak in 2011, when it pro-
duced sales of $6.6 billion. However,
the loss of patent protection in 2016
accelerated a decline in Crestor sales as
the drug faced generic competition.
In the face of dwindling sales of old
bestsellers, Astra has been investing in
its drugs pipeline and it returned to
product sales growth in 2018 for the
first time in almost a decade. New
medicines, particularly in oncology,
have revived its results and share price,
which hit new highs this year and put it
among the most valuable companies in
the FTSE 100.
The turnaround from the so-called
patent cliff has been led by Pascal
Soriot, 61, Astra’s chief executive since
2012, whose strategy has included off-
loading older drugs to generate cash
that in turn has been reinvested in
producing new treatments, as well asCrestor delivers final
boost to Astrazeneca
focusing on core areas, such as cancer
therapies.
The group was formed through the
1999 merger of Astra, of Sweden, and
Zeneca, the British group. It is based in
Cambridge.
Crestor is a statin used to treat blood
lipid disorders and to prevent heart
attacks and strokes. It blocks an
enzyme in the liver causing the liver to
make less cholesterol and it increases
the uptake and breakdown by the liver
of cholesterol already in the blood. It is
approved in more than 100 countries.
Astra previously made Crestor at a
manufacturing site called Avlon near
Bristol, which collapsed into adminis-
tration last year, two years after it had
been sold by Astra to Avara, a contract
manufacturing group, for £1.
Under the deal with Grünenthal,
Astra will continue to make and supply
Crestor to the German drugs group
during a transition period and will con-
tinue to sell it in other countries, includ-
ing in North America and China. Cres-
tor generated sales of almost $1.3 billion
last year, of which $136 million was in
countries covered by the agreement.
The sale is expected to be completed
in the first quarter of next year, when
Grünenthal will pay Astra $320 million.
It may make future milestone pay-
ments of up to $30 million.
Shares in Astrazeneca were largely
flat at £78, down only 5p, valuing the
group at £102 billion.Alex Ralph
The price of copper rose to fresh seven-
year highs yesterday as analysts said
that the price could reach $10,000 a
tonne by 2022.
The red metal traded above $7,700 a
tonne on the London Metal Exchange,
having risen as high as $7,723.
Copper has rebounded from lows of
less than $4,400 a tonne in March and
has soared by about $1,000 in the past
month as news of vaccine break-
throughs triggered hopes of resurgent
demand. Indications that manufac-
turing is bouncing back in Asia and
Europe has added to optimism, while aCopper soars ‘in bull market’
weaker dollar has provided further
support as it makes commodities priced
in the currency more attractive to
holders of other currencies.
Analysts at Goldman Sachs said yes-
terday that a “bull market for copper is
now fully under way”. They increased
their 12-month target price for copper
to $9,500 a tonne, from $7,500 previ-
ously, and said it was “highly probable
that by [the first half of] 2022 copper will
test the existing record highs set in 2011
[of $10,170]”.
Copper’s rise boosted shares in
producers such as Antofagasta, which
closed up 57½p, or 4.6 per cent, at £13.11.
Tempus, page 48Emily Gosden
the most profitable in
recent years, with
shares more than
doubling from their
200p debut price.
Most independent
analysts have said that
the offer undervalues
Codemasters, whose
revenue has risen
during lockdown, and
a counter-bid is
expected by some.
Shareholders in
Codemasters have
until December 21 to
vote on the
proposition.
Shares in
Codemasters fell by a
penny, or 0.2 per cent,
to 503p last night.executive directors,
who stand to gain
£2 million in
accelerated share
option payouts if the
takeover is completed.
Take-Two is offering
120p in cash and
0.02834 of its sharesfor every share in
Codemasters. The offer
valued the British
business at
£759 million, or 485p a
share, when it was
disclosed last month, a
premium of 12 per cent
to the previous day’s
closing price of 435p.
As of Monday’s night’s
closing price, the offer
values Codemasters at
505p a share, or
£770 million.
The company’s 2018
listing has been one ofO
ne of Britain’s
most prominent
hedge funds has
bought a stake worth
almost £15 million in
Codemasters, the video
games developer that
has agreed a takeover
bid from an American
rival (Simon Duke
writes).
Odey Asset
Management has
acquired a 1.9 per cent
interest in the
developer, which
specialises in racing
simulation games. The
fund was founded in
1991 by Crispin Odey, a
Conservative party
donor.
The hedge fund has
built its holding
through contracts for
difference, derivativesthat allow investors to
make leveraged bets
on share prices.
The swoop on
Codemasters is an
apparent attempt to
exert pressure on the
directors, who are
struggling to win
shareholder support
for the takeover.
Take-Two
Interactive, an
American group
behind Grand Theft
Auto, has offered a mix
of cash and shares for
Codemasters.
However, three large
institutional investors
have told The Times
that the bid is not high
enough. One has
questioned the
independence of
Codemasters’ non-Odey is now a player
in Codemasters race
Increased interest in
games such as GRID
have led to a surge in
revenues at Codemasters