Chugai in $73M deal with Cell Therapeutics

Japan's Chugai Pharmaceutical has signed a licensing deal with CellTherapeutics for the latter's PG-TXL (polyglutamate-paclitaxel), giving it rights to develop and commercialize the drug in several Asian markets, including Japan and South Korea. In return, Chugai will pay up to $73 million in licensing fees, milestone payments and development costs, and has already paid an upfront fee of $3 million for rights to the drug.

Motoo Ueno, senior vice president of corporate strategy and pharmaceutical operations at Chugai, said that "we are attracted to the potential improvement in quality of life that PG-TXL may offer cancer patients in Asia,'' noting that "this second-generation taxane is expected to be safer and more effective, with high market attractiveness.'' He added that the potential activity of PG-TXL against tumors where Bristol-Myers Squibb's Taxol (paclitaxel) and Aventis' Taxotere (docetaxel) are not effective, is "intriguing, and a key reason for us entering into this licensing agreement."

Cell Therapeutics announced the Chugai deal at the same time as posting a heavier-than-expected net loss of $21.3 million, or $0.64 per share, for the third quarter of 2001, compared with a loss of $13.9 million, or $0.55 cents per share, in the like, year-earlier period. Sales of Trisenox (arsenic trioxide) were $1 million, compared with $1.9 million in second-quarter 2001, which the company said was due to soft demand during July and August and the temporary interruption of product shipments following the September 11 terrorist attacks in the USA.