Spectrum and Cell Therapeutics form JV to market lymphoma drug

Under terms of the agreement, upon the closing of the transaction the companies will become the sole members of a limited liability company (LLC) whose sole purpose would be to commercialize Zevalin in the US.

A board of managers comprised of an equal number of members from both companies would be established to govern the LLC. Both parties will equally provide for the future capital requirements of the LLC and share equally in the profits and losses of the LLC.

Cell Therapeutics will receive an initial payment of $7.5 million at closing and $7.5 million in early January 2008, in addition up to $15 million product sales milestone payments upon achievement of certain revenue targets.

The closing of the joint venture transaction is subject to the satisfaction of certain customary closing conditions, including the consent of Biogen Idec to convey the Zevalin-related assets to the LLC. Cell Therapeutics and Spectrum currently expect the transaction to close in December 2008.

Zevalin, a radioimmunotherapeutic is currently marketed in the US by Cell Therapeutics for the treatment of patients with relapsed or refractory, low-grade or follicular B-cell non-Hodgkin’s lymphoma (NHL), including patients who have rituximab-refractory follicular NHL.

James Bianco, CEO of Cell Therapeutics, said: “This partnership will enable Cell Therapeutics to deploy a larger combined sales and marketing team to accelerate top-line product revenues in the near-term and reduce our costs to develop Zevalin for new growth opportunities, resulting in an increase in Cell Therapeutics’s bottom-line overall.”