Cell Therapeutics (CTI) made an initial payment of $10 million to Biogen Idec in exchange for control of US marketing, sales, and development of Zevalin. Under the terms of the acquisition agreement, CTI will pay royalties to Biogen Idec based on the net sales of Zevalin until at least December 2015, and 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 non-Hodgkin’s lymphoma (NHL). CTI also has agreed to share the cost of certain clinical trials of Zevalin with Bayer Schering in the event such trials are undertaken.
Zevalin will continue to be sold outside the US by Bayer Schering under an agreement between Biogen Idec and Bayer Schering.
James Bianco, president and CEO of CTI, said: “This acquisition puts CTI back into the commercial arena, which is a relatively exclusive space for biotech companies, and also strengthens our product pipeline.”