Under the agreement, PharmaBio Development will provide Cell Therapeutics (CTI) $25 million in cash and will make available $5 million in clinical services from Quintiles. In return, CTI will pay PharmaBio Development royalties based on a percentage of net sales of Trisenox (arsenic trioxide) in the US and certain European countries.
The agreement also provides PharmaBio Development with a security interest in Trisenox related to CTI’s royalty payment obligations. The royalty payments from CTI are subject to certain annual minimum and maximum amounts. The minimum payment obligation of the agreement is $53 million and is derived from current forecasts for Trisenox over the course of the agreement.
CTI intends to use the majority of the services commitment under the agreement for phase III development work in 2005 on pixantrone, an investigational agent under development for the potential treatment of non-Hodgkin’s lymphoma.
“This agreement enables CTI to monetize a percentage of future cash flows of Trisenox while maintaining control over the development and commercialization of the product,” stated Dr James Bianco, president and CEO of CTI. “We’re pleased to broaden our existing relationship with Quintiles, continuing our efforts to expand the Trisenox label, and working together to complete the pixantrone pivotal trial in non-Hodgkin’s lymphoma.”