- 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.
Cell Therapeutics gets pacritinib partner in Baxter
Nov 15 2013, 07:56 ET