Cell sells Trisenox to Cephalon
CTI Technologies, a wholly-owned subsidiary of Cell Therapeutics has agreed to sell the Trisenox brand to Cephalon. Under the terms of the agreement, Cephalon will pay CTI and its affiliates an aggregate of approximately $70m for Trisenox and certain proteasome assets, subject to a working capital adjustment. In addition, CTI may receive up to an additional $100m in cash if certain sales and regulatory milestones are achieved.
CTI Technologies, a wholly-owned subsidiary of Cell Therapeutics has agreed to sell the Trisenox brand to Cephalon. Under the terms of the agreement, Cephalon will pay CTI and its affiliates an aggregate of approximately $70m for Trisenox and certain proteasome assets, subject to a working capital adjustment. In addition, CTI may receive up to an additional $100m in cash if certain sales and regulatory milestones are achieved.
Under the terms of the agreement, Cephalon will assume control of the worldwide marketing, sales, and development of the drug, and Cephalon will offer employment to CTI's US-based commercial employees. The agreement also provides for CTI to transfer to Cephalon sole rights to its current joint proteasome inhibitor research collaboration, which is in preclinical development. Cephalon will assume all costs for advancing the proteasome inhibitor candidate and will pay CTI royalties on future worldwide product sales.
'Trisenox is an effective therapy for certain haematologic malignancies and Cephalon has the expertise and resources necessary to maximise its value. This agreement allows the CTI to focus its resources on taking Xyotax through to its NDA filing and advancing pixantrone through its phase III programme,' president and CEO of CTI, Dr James Bianco, said. 'The size of the solid tumour market is more attractive for us and, coupled with the Xyotax product profile demonstrated in its phase III clinical trials, we believe focusing on bringing Xyotax to market will have the highest return on investment for our shareholders and is consistent with our long-term strategy in oncology.'
As a result of the agreement and an internal reorganisation, CTI's headcount will be reduced by about 130 in the US, which is expected to reduce its operating expenses, as the company focuses its resources and efforts on the development of Xyotax and pixantrone. Steve Aselage, executive vice president of global commercial operations, will be assisting with the Trisenox transition before leaving CTI at the end of June.
'We appreciate the significant advancements made in our commercial capabilities under Steve's leadership as well as the efforts of the Trisenox team,' Bianco noted. 'We believe the steps announced today place CTI in the financial position to continue the development of our product pipeline and to advance Xyotax toward commercialisation.'