Spectrum Pharmaceuticals Sells Marketed Portfolio to Acrotech Biopharma L.L.C. to Focus on New and Innovative Therapies for Cancer Patients
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Spectrum will receive
$160 million in an upfront cash payment and up to$140 million in regulatory and sales-based milestones - Staff size will be reduced by approximately 40 percent with the majority of impacted staff transitioning to Acrotech
- Spectrum will retain a core group of commercial talent to lead the launch of ROLONTIS® (eflapegrastim) and poziotinib
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Management to host a webcast on
January 17, 2019 at8:30 AM EST to discuss the transaction
"This divestiture marks a major strategic shift for Spectrum to ensure
laser-focus on novel, oncology drug development and commercialization,"
said
The seven products included in the sale are: FUSILEV®
(levoleucovorin), FOLOTYN® (pralatrexate injection), ZEVALIN®
(ibritumomab tiuxetan), MARQIBO® (vinCRIStine sulfate
LIPOSOME injection), BELEODAQ® (belinostat) for injection,
EVOMELA® (melphalan) for injection, and KHAPZORY™
(levoleucovorin). The products generated combined sales of
"Along with this divestiture, the majority of impacted staff will
transition to Acrotech thereby right sizing Spectrum for our development
efforts. Additionally, we are retaining a core group of commercial
talent to lead the launch of ROLONTIS and poziotinib," added
The Boards of Directors of
Conference call details:
Domestic: (877) 837-3910, Conference ID# 2890988
International:
(973) 796-5077, Conference ID# 2890988
The conference call will also be webcast live. To access the webcast, please visit the Investor Relations page of the Spectrum Pharmaceuticals website at https://www.sppirx.com/events-and-presentations.html.
For interested individuals unable to join the call, a replay will be
available from
Domestic Replay Dial-In: (855) 859-2056, Conference ID# 2890988
International
Replay Dial-In: (404) 537-3406, Conference ID# 2890988
Terms of Purchase and Sale Agreement
Under the terms of the deal, Acrotech will make a
Marqibo Milestones
$30 million for FDA Product Approval for MARQIBOwith label indicated for diffuse large B-cell lymphoma$10 million for FDA Product Approval for MARQIBO for any indication other than the B-Cell Lymphoma Indication, single vial or pediatric ALL$30 million for Net Sales of MARQIBOduring any trailing twelve (12) month period during the Milestone Period are equal to or greater than$300,000,000 $10 million for Net Sales of MARQIBO during any trailing twelve (12) month period during the Milestone Period are equal to or greater than$400,000,000
Khapzory Milestones
$5 million for Net Sales of KHAPZORY during any trailing twelve (12) month period during the Milestone Period are equal to or greater than$50,000,000 $5 million for Cumulative Net Sales of KHAPZORY are equal to or greater than$150,000,000 at any time during the Milestone Period$10 million for Cumulative Net Sales of KHAPZORY are equal to or greater than$200,000,000 at any time during the Milestone Period$15 million for Cumulative Net Sales of KHAPZORY are equal to or greater than$300,000,000 at any time during the Milestone Period$25 million for Cumulative Net Sales of KHAPZORY are equal to or greater than$400,000,000 at any time during the Milestone Period
The milestone period lasts for five years post the closing of the transaction. KHAPZORY milestones only payable in the event KHAPZORY is assigned a unique J-code.
About
Spectrum Pharmaceuticals is a leading biotechnology company focused on acquiring, developing, and commercializing drug products, with a primary focus in hematology and oncology. Spectrum has an advanced stage pipeline that has the potential to transform the company. Spectrum's strong track record for in-licensing and acquiring differentiated drugs, and expertise in clinical development have generated a robust, diversified, and growing pipeline of product candidates in advanced-stage Phase 2 and Phase 3 studies. More information on Spectrum is available at www.sppirx.com.
Forward-looking statement - Certain statements in this press release
may constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995, as
amended to date. These forward-looking statements relate to a variety of
matters, including, without limitation, statements that relate to
Spectrum's business and its future, including the Company's ability to
complete the reported transaction within 90 days, or at all, the cash
proceeds expected to be received from the transaction, including the
amount andlikelihood of receipt of any regulatory- and
sales-based milestone payments, the Company's planned use of the
proceeds from the transaction, including the Company's ability to
advance development of its two late-stage pipeline assets and enhance
its business development efforts with the expected proceeds, the results
expected to be realized from the planned staff reduction, the future
potential of Spectrum's existing drug pipeline and other statements that
are not purely statements of historical fact. These forward-looking
statements are made on the basis of the current beliefs, expectations
and assumptions of the management of Spectrum and are subject to
significant risks and uncertainties that could cause actual results to
differ materially from what may be expressed or implied in these
forward-looking statements. Risks that could cause actual results to
differ include, but are not limited to, the uncertainties inherent in
regulatory approval of the transaction, risks related to our ability to
meet the regulatory- and sales-based milestones set forth in the
transaction documents and other risks that are described in further
detail in the Company's reports filed with the
© 2019
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Source:
COMPANY CONTACTS
Shiv Kapoor
Vice President, Strategic
Planning & Investor Relations
702-835-6300
InvestorRelations@sppirx.com