Might it not have been cheaper for GPC to buy the company ?
Tuesday October 1, 1:00 am ET /PRNewswire-FirstCall/ -- GPC Biotech AG (Frankfurt Stock Exchange: GPC)
today announced that it has signed an agreement with
NeoTherapeutics, Inc. (Nasdaq: NEOTD - News) granting GPC Biotech an exclusive
worldwide license to satraplatin, an
orally-administered anti-cancer agent in late-stage clinical development.
Under the licensing and co-development agreement, NeoTherapeutics will receive
a license fee that consists of a US$2 million payment upon signing and a
payment of US$1 million plus a US$1 million equity investment upon first
dosing of a patient in a registrational study. GPC Biotech will pay
additional milestones totaling up to US$18 million, the first of which is
anticipated to be the acceptance of the NDA (New Drug Application) filing by
the U.S. Food and Drug Administration. Upon commercialization of satraplatin,
NeoTherapeutics will also receive a royalty payment based on net sales. GPC
Biotech will fully fund development and commercialization expenses for
satraplatin. GPC Biotech and NeoTherapeutics have agreed to form a Joint
Development Committee, headed by GPC Biotech, to govern the development of
satraplatin. Satraplatin Phase 2 studies have been successfully completed for
the treatment of hormone-resistant prostate cancer, as well as other tumor
types. GPC Biotech expects to begin Phase 3 clinical development of
satraplatin for the treatment of hormone-resistant prostate cancer in 2003,
with clinical trials to be conducted in both the U.S. and Europe. Additional
terms of the agreement were not disclosed.
"This exciting late-stage clinical compound represents a milestone in expanding GPC Biotech's oncology-focused drug pipeline," said Bernd R. Seizinger, M.D., Ph.D., President and Chief Executive Officer of GPC Biotech. "We are delighted to be working with NeoTherapeutics to bring satraplatin to the market as quickly as possible." Dr. Seizinger continued, "Data from approximately 500 patients treated so far strongly suggest that satraplatin has the potential to become an important anti-cancer drug, particularly in the treatment of hormone-resistant prostate cancer. Another important feature of satraplatin is the fact that it can be orally administered. There is currently no orally-administered platinum compound on the market. The oral administration route would provide the possibility of treating cancer patients on an out-patient basis, which is considered to be an increasingly important trend in modern anti-cancer therapy."
"GPC Biotech's and NeoTherapeutics' partnership to develop satraplatin is a natural fit for many reasons," stated Luigi Lenaz, M.D., President of the oncology division of NeoTherapeutics. "Members of senior management and clinical development from both companies have worked well together in the past. The development team has strong knowledge of platinum derivate compounds based on their former involvement in the development of cisplatin and carboplatin. I also look forward to collaborating again with a leader in oncology like Marcel Rozencweig, M.D., Senior Vice President, Drug Development at GPC Biotech. His expertise in worldwide drug development will contribute greatly to our potential success."
Satraplatin is an orally-administered platinum derivative licensed from Johnson Matthey to NeoTherapeutics. Platinum derivatives are one of the most active classes of cytotoxic anti-cancer agents and are currently used to treat a wide range of cancers. First and second-generation agents, cisplatin and carboplatin, are widely used in treating cancer and generate annual sales in excess of US$800 million. Neither drug is approved to treat prostate cancer.
Prostate cancer is the second leading cause of cancer death in men. Nearly 200,000 men in the United States alone were diagnosed with the disease in 2001, and in that same year, over 30,000 men in the U.S. died of prostate cancer. (Source: cdc.gov Currently, approved treatment options for patients with hormone-resistant prostate cancer are extremely limited; therefore, developing satraplatin in this clinical setting would serve an area of great unmet medical need.
GPC Biotech AG is a genomics- and proteomics-driven biotechnology company focused on the development of novel anti-cancer drugs. Ongoing programs in immunology and infectious diseases provide upside potential through strategic partnering opportunities. Drug discovery alliance partners include: ALTANA Pharma of ALTANA AG (ALT.FSE; NYSE: AAA), Aventis Pharma (PAVE.PSE), Boehringer Ingelheim International GmbH, MorphoSys AG (MOR.FSE) and PanTherix Ltd. GPC Biotech AG is headquartered in Martinsried/Munich (Germany). The Company's wholly-owned U.S. subsidiary has research sites in Waltham, Massachusetts and Princeton, New Jersey. For additional information, please visit the Company's website at gpc-biotech.com. |
