Cell Therapeutics, Inc. and Quintiles PharmaBio Development Enter Into TRISENOX(R) Financing Agreement
Tuesday December 21, 8:01 am ET
Agreement Provides up to $30 Million in Cash and Services to CTI in Return for Royalties on Net Sales of TRISENOX
SEATTLE, Dec. 21 /PRNewswire-FirstCall/ -- Cell Therapeutics, Inc. (CTI) (Nasdaq: CTIC - News) today announced that it has signed a six year financing and services agreement with PharmaBio Development, the strategic partnering group of Quintiles Transnational, Corp. (Quintiles) involving CTI's cancer therapy, TRISENOX® (arsenic trioxide).
Under the agreement, PharmaBio Development will provide 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 in the United States 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 James A. Bianco, M.D., 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."
Tom Perkins, Senior Vice President of PharmaBio Development, commented, "Providing tailored strategic and financial solutions to help our pharma and biotech customers is PharmaBio Development's mission. This agreement is an excellent example. We're pleased to have an even stronger partnership with CTI and look forward to seeking out new ways to help further its development and commercialization programs."... |
