CTI will be responsible for marketing, sales, and development of the drug in the US, while the drug will continue to be sold outside the US by Bayer Schering under an agreement between Biogen Idec.
The FDA approved Zevalin in 2002 to treat patients with relapsed indolent non-Hodgkin’s lymphoma (NHL). In 2006, Biogen Idec reported $16.4 million in US Zevalin sales.
“Zevalin is an effective yet underutilized drug with a favorable tolerability profile, producing high rates of complete response coupled with long-term remissions, all following just a single therapeutic dose,” said Jack W. Singer, chief medical officer of CTI. “We believe the potential cost savings and practice efficiencies compared to standard combination chemotherapy will become increasingly attractive to oncology group practices in the ever-evolving reimbursement environment. We are currently planning to conduct registration-directed trials to expand the label into first-line treatment in both the aggressive and indolent NHL settings,” Singer noted.
James A. Bianco, president and CEO of CTI, commented: “In addition to the untapped revenue potential for Zevalin, it is an excellent complement to pixantrone, which is in Phase III trials in similar patient populations.”
Under the terms of the agreement, CTI will assume control of US marketing, sales, and development of Zevalin. Upon closing, CTI has agreed to pay Biogen Idec $10 million in cash up front, up to an additional $20 million in milestone payments when the product receives approval for a first-line indication in NHL, and royalties on sales. CTI has also agreed to share the cost of certain clinical trials of Zevalin with Bayer Schering in the event such trials are undertaken.
The acquisition is subject to certain closing conditions, including filings under the Hart-Scott-Rodino antitrust improvements act. CTI was advised on the transaction by CIBC World Markets.