Baxter, Cell Therapeutics Collaborate To Develop, Commercialize Pacritinib

(RTTNews) - Baxter International Inc. (BAX) and Cell Therapeutics, Inc. (CTIC), Friday said they entered into an worldwide licensing agreement to develop and commercialize pacritinib, a novel investigational JAK2/FLT3 inhibitor with activity against genetic mutations linked to myelofibrosis, leukemia and certain solid tumors. Pacritinib is currently in Phase III development for patients with myelofibrosis, a chronic malignant bone marrow disorder.

Pursuant to the agreement, Baxter gets exclusive commercialization rights for all indications for pacritinib outside the U.S., while the company jointly with CTI will commercialize pacritinib in the U.S. Baxter will pay $60 million, inclusive of $30 million equity investment in CTI. Meanwhile CTI is eligible to receive clinical, regulatory, and commercial launch milestone payments of up to $112 million, $40 million of which relates to clinical milestones that may be achieved in 2014. CTI may also receive additional sales milestone payments, and will receive royalties on net sales of pacritinib in ex-US markets, and the companies will share U.S. profits equally.

Baxter will record a pre-tax in-process research and development charge of about $30 million in the fourth quarter of 2013.