Spectrum to acquire Targent’s cancer assets

The key product to be acquired is levofolinic acid (LFA), the pure active isomer of calcium leucovorin, a component of cancer standard of care treatment 5-fluorouracil (5-FU) containing regimens for the treatment of colorectal and other malignancies. Calcium leucovorin is also used after the administration of high-dose methotrexate in treating certain malignancies.

A new drug application (NDA) for LFA has been filed with by the FDA for the osteosarcoma indication. In addition, LFA has been granted orphan drug status for colorectal cancer in combination with 5-FU and for osteogenic sarcoma in use with metheotrexate rescue.

Spectrum will obtain the rights to LFA in the US, Canada and Mexico. The drug is currently marketed by Wyeth, Sanofi-Aventis and others in other parts of the world. The current market for LFA outside North America is estimated to be approximately $200 million a year.

Under the terms of the agreement, Spectrum has agreed to issue to Targent an aggregate amount of 600,000 shares of the company’s common stock at closing. In addition, on achieving certain regulatory and sales milestones, Targent is eligible to receive cash payments as well as up to an aggregate amount of 650,000 shares of the company’s common stock.

Certain rights to additional potential drug candidates in the oncology therapeutic area will also be acquired.

“Scientific consensus in the US and abroad acknowledges that LFA is the only active isomer of leucovorin,” said Dr Luigi Lenaz, chief scientific officer at Spectrum. “The currently available drug on the market (calcium leucovorin) is a racemic mixture containing only 50% of active drug LFA. Consistent with the FDA’s position to develop pure isomers of drugs, LFA represents an improvement over the currently marketed product and an opportunity for Spectrum to launch its first proprietary drug.”