AstraZeneca To Co-Promote Abraxis’ Paclitaxel
This article was originally published in The Pink Sheet Daily
Executive Summary
Abraxis bolsters the resources behind Abraxane by doubling its sales force and acquiring Pfizer’s manufacturing facility in Puerto Rico.
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AstraZeneca will co-promote Abraxis' albumin-bound paclitaxel formulation Abraxane under an agreement announced April 26. AstraZeneca will make an up-front payment of $200 mil., split promotional costs of the drugs evenly with Abraxis, and contribute to the overall clinical development program, according to the terms of the agreement. AstraZeneca's contributions will double the current sales force for Abraxane. Additionally, AstraZeneca will receive a 22% commission on net sales of Abraxane for the duration of the five-and-a-half year agreement. The commission will drop to 10% for the first year after the agreement ends and 5% for the second year. The agreement is effective July 1. Abraxane, which generated $134 mil. in U.S. sales for the first 11 months of 2005, was approved for treatment of breast cancer in January 2005 (1 (Also see "FDA Approves APP's Abraxane Paclitaxel Formulation" - Pink Sheet, 7 Jan, 2005.)). In exchange, Abraxis will acquire AstraZeneca's brand anesthetic and analgesic injectable portfolios, which generated $217 mil. in U.S. sales in 2005, the firm said. The acquisition will include AstraZeneca's Diprivan (propofol) and Naropin (ropivacaine) as well as its local anesthetics such as Xylocaine , Polocaine and Nesacaine . Abraxis will pay AstraZeneca $275 mil. at the close of the deal and $75 mil. at its first year anniversary. AstraZeneca will provide Abraxis with product for an "initial" term of five years. Abraxis also has right of first purchase or license outside the U.S. Abraxis has further bolstered resources behind Abraxane with its recent acquisition of Pfizer's Puerto Rico manufacturing site, announced April 25. This will be Abraxis' third facility producing chemotherapeutics such as Abraxane, which is made with the company's nanoparticle albumin-bound technology. The site includes a manufacturing facility, an active pharmaceutical ingredient manufacturing plant, and two supporting facilities. The terms of the agreement provide that Abraxis will lease part of the plant back to Pfizer for the manufacture of celecoxib, the active ingredient in Celebrex . -Kathryn Phelps |