AstraZeneca (AZN) has entered a global licensing agreement to develop and commercialize Dizal Pharmaceutical's lung cancer drug Zegfrovy in a deal worth up to $1.5 billion, the company said Tuesday.

The company will pay Dizal $600 million upfront and up to $900 million in additional development, regulatory and sales milestones, plus tiered royalties on global sales, it said.

The transaction is expected to close in H2, subject to customary conditions and regulatory approvals.

AstraZeneca shares were 1.6% lower in Tuesday premarket trading.