Cell Therapeutics gets pacritinib partner in Baxter

|By:, SA News Editor

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.