AstraZeneca plc agreed to buy Pearl Therapeutics Inc., a closely held U.S. drugmaker, for as much as $1.15 billion to expand its portfolio of respiratory-disease treatments as competition for lung medicines increases.

The U.K. company will pay $560 million initially for Redwood City, Calif.-based Pearl Therapeutics, AstraZeneca said today in a statement. Payments related to development of Pearl Therapeutics’ products could add as much as $450 million to the price, and sales-related payments could add as much as $140 million, according to the statement.

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