AstraZeneca announced the intention to reach a definitive agreement for the acquisition of the rights to Actavis’ branded respiratory business in the US and Canada. The deal shall reach $600 million on completion and includes low single-digit royalties above a certain revenue threshold.

AstraZeneca will own the development and commercial rights in the US and Canada to aclidinium bromide inhalation powder and to roflumilast, the only once-daily oral PDE4 inhibitor currently on the market for COPD.

AstraZeneca will also own development rights in the US and Canada for LAS40464, the combination of a fixed dose of aclidinium with formoterol long acting beta agonist in a dry powder inhaler, which has been already approved in the European Union.

The transaction strengthens AstraZeneca’s respiratory position globally and builds on the acquisition of Almirall’s respiratory portfolio in 2014.