SEATTLE Cell Therapeutics has completed its acquisition of Zevalin from Biogen Idec.
CTI will have sole responsibility for marketing, sales and development of Zevalin (ibritumomab tiuxetan) in the U.S. Zevalin, which was approved in 2002 to treat patients with relapsed indolent non-Hodgkin’s lymphoma, will be sold outside the U.S. by Bayer Schering. CTI will share the cost of certain clinical trials of Zevalin with Bayer Schering in the event such trials are undertaken, the company reported.
CTI made an initial payment of $10 million to Biogen Idec in the exchange and will pay royalties to Biogen Idec based on the net sales of Zevalin until at least December 2015. CTI has also agreed to pay up to an additional $20 million in milestone payments if the product receives approval from the FDA for certain first-line indications in NHL.
“This acquisition puts CTI back into the commercial arena, which is a relatively exclusive space for biotech companies, and also strengthens our product pipeline,” said James Bianco, president and chief executive officer of CTI. “Adding the commercial infrastructure now may also provide a benefit to the company for future launches of other products in our pipeline. This is especially relevant to the potential launch of pixantrone and its expected synergies with Zevalin.”
In 2006, Biogen Idec reported $16.4 million in U.S. Zevalin sales.