CureTech reclaims rare disease drug from Pfizer for $20 million
pharmafile | October 2, 2017 | News story | Sales and Marketing | Clal Biotechnology, CureTech, Medivation, Pfizer, pharma, pharmaceutical
CureTech, a biotech firm owned by Clal Biotechnology Industries, is set to reclaim a drug it sold more than two years ago, paying $20 million to Pfizer for pidilizumab, a treatment for diffuse intrinsic pontine glioma (DIPG).
CureTech originally sold the drug to Medivation in 2014 for up to a potential $90 million, but Pfizer acquired the rights to the drug when it bought the company. Though Pfizer carried out its commercial agreement on the drug, it has made no significant moves to market it, leaving CureTech to swoop in and reclaim it. The total $20 million will be paid in milestones, and CureTech’s plan is now to identify another potential buyer who could take on the drug as a lead product in a bid to generate more revenue.
The company also intends to continue development of the drug in expanded indications within cancer and is considering creating new business and financial partnerships to this end, though it currently does not have the available funds to make these development commitments itself. It was noted that despite any development programmes, there is no guarantee that the acquisition of the drug will lead to the creation of saleable drug candidates.
The news did not outwardly affect CureTech’s share price, though Clal Biotechnology is now expected to recognise a NIS profit of between 20 and 30 million in its third quarter as a result of the deal.
DIPG is a rare disease which consists of a brain stem tumour, mostly affecting children, and it is expected that the potentially quicker route to market through a rare disease approval pathway could make it a lucrative investment for smaller firms.
Matt Fellows
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