REFILE-UPDATE 1-AstraZeneca, Abraxis set to end cancer drug deal

(Corrects to delete superfluous "fee" in second paragraph) (Adds more details, sales, background)

LONDON, Nov 25 (Reuters) - AstraZeneca Plc (AZN.L) is set to end a two-year-old breast cancer drug deal with U.S.-based Abraxis BioScience Inc (ABII.O), the Anglo-Swedish drugmaker said on Tuesday.

The termination of the co-promotion agreement for Abraxane -- if approved by the Abraxis board in January -- will result in the payment of a fee of $268 million to AstraZeneca on March 31, 2009.

AstraZeneca paid $200 million to acquire rights to Abraxane in the United States in April 2006 and said at the time it believed the product could become a major seller. It generated modest sales of $62 million for AstraZeneca in 2007.

If the Abraxis board does not approve ending the deal then the co-promotion agreement will continue with an amended commission to AstraZeneca of 50 percent, against 22 percent at present. (Reporting by Ben Hirschler)