Xyotax returned from the Far East.
Item 8.01. Other Events.
Cell Therapeutics, Inc. (the “Corporation”) and Chugai Pharmaceuticals Co., Ltd. (“Chugai”) are parties to a License Agreement dated as of October 19, 2001 between the Corporation and Chugai, as amended (the “License Agreement”). Under the License Agreement, Chugai generally has the right to develop XYOTAX in the following territories: Japan, Taiwan, China, South Korea, the Philippines, Malaysia, Thailand, Indonesia, Singapore, and Vietnam (the “Territories”). In October 2002, Chugai merged with Nippon Roche K.K., a wholly-owned subsidiary of Roche Pharmholding B.V. Recently, the Corporation has been in discussions with Chugai about the relinquishing by Chugai of its rights to certain Territories, with the focus on retaining for the Corporation the development and commercialization rights of XYOTAX in these territories. On October 17, 2005, the Corporation received a letter from Chugai proposing the termination of the License Agreement. It appears that, given the product rights available to Chugai as a result of its merger with Nippon Roche K.K., Chugai does not believe that its development of XYOTAX for monotherapy in women in the Territories is consistent with Chugai’s commercial goals. However, the Corporation believes that, based on interest expressed by other third parties, it is in the best interests of the Corporation to retain the development and commercialization rights of XYOTAX in certain Territories. Therefore, the Corporation intends to continue negotiations with Chugai regarding a mutually beneficial termination of the License Agreement, with the goal of regaining marketing rights in certain Territories. There can be no assurance that the Corporation will be able to successfully negotiate this result.
[?. Isn't it after all Chugai, who wants to get rid of this stuff] |
