Pharmion licenses rights to GPC Biotech drug

Satraplatin has shown promising safety and efficacy as demonstrated by significant improvement in progression-free survival in a study of first-line hormone-refractory prostate cancer (HRPC). The drug is currently the subject of a phase III registration trial as second-line chemotherapy treatment for HRPC.

Under the terms of the agreement, Pharmion will pay an upfront $37.1 million for exclusive commercialization rights for Europe, Turkey, the Middle East, Australia and New Zealand, while GPC Biotech retains rights to the North American market and all other territories.

The companies will pursue a joint development plan for satraplatin in a variety of tumor types and will share global development costs. Pharmion will also pay $30.5 million based on the achievement of certain regulatory filing and approval milestones, and up to an additional $75 million for up to five subsequent EMEA approvals for additional indications.

GPC Biotech is set to receive royalties on Pharmion sales of satraplatin at rates of 26% to 30% on annual sales up to $500 million, and 34% on annual sales over $500 million.

Finally GPC Biotech may receive sales milestones totaling up to $105 million, based on the achievement of significant annual sales levels in the Pharmion territories.

“We believe that satraplatin has the potential to provide significant additional benefits in the well-characterized platinum treatment class, and we will work closely with GPC Biotech to get this vital therapy to physicians and patients as quickly as possible,” said Patrick Mahaffy, Pharmion’s president and CEO.