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Cell Therapeutics gets pacritinib partner in Baxter

  • Cell Therapeutics (CTIC) and Baxter (BAX) enter into a licensing agreement for the development and commercialization of pacritinib (the JAK2/FLT3 inhibitor that's currently in Phase 3 testing for myelofibrosis).
  • Terms: Upfront payment to CTIC of $60M, $30M of which is an equity investment; CTIC eligible for milestone payments up to $112M and sales milestone payments assuming approval; CTIC gets royalties on sales outside the U.S., where BAX has assumed commercialization rights; the two companies will jointly commercialize the drug in the U.S.
  • BAX will book a $30M pre-tax R&D charge in Q4.
  • CTIC calls BAX "the ideal strategic partner." (PR)
  • On watch today are shares of Incyte (INCY), whose Jakafi may see some competition from pacritinib, although it isn't clear how much of a dent pacritinib will make.
Comments (1)
  • jacosa
    , contributor
    Comments (101) | Send Message
     
    Drug may well find a market, but probably not a candidate to become first-line treatment for MF because the anti JAK-1 activity of Jakafi, the incumbent, reduces morbidity. Also, the pneumonia signal seen in early pacritinib trials is a concern.
    15 Nov 2013, 09:13 AM Reply Like
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