Davis Polk acted as special U.S. and U.K. tax counsel to AstraZeneca in connection with the establishment of its strategic oncology collaboration with Merck. Under the agreement, the companies will jointly develop and commercialize AstraZeneca’s Lynparza, a product currently approved for BRCA-mutated ovarian cancer in multiple lines of treatment, and Selumetinib, a product currently being developed for multiple indications including thyroid cancer. Merck will pay AstraZeneca up to $8.5 billion in total consideration as part of the agreement.

AstraZeneca is a global, innovation-driven biopharmaceutical business that focuses on the discovery, development and commercialization of prescription medicines for three main therapy areas of healthcare: cardiovascular and metabolic diseases, oncology and respiratory.

Merck is a global healthcare leader that delivers innovative health solutions through its prescription medicines, vaccines, biologic therapies and animal health products, which it markets directly and through its joint ventures in more than 140 countries.

The Davis Polk tax team includes partners Jonathan Cooklin and Neil Barr and associates Dominic Foulkes and Patrick E. Sigmon. Members of the Davis Polk team are based in the London and New York offices.