Topotargetin receives $17.8 million in milestone payments and could receive another $25 million

Danish oncology drug development company Topotargetin (OMX: TOPO) has been the subject of an increased valuation ahead of an anticipated approval for Beleodaq (belinostat).

Beleodaq could be approved on August 9 by the US Food and Drug Administration after the FDA accepted the product filing and granted priority review for relapsed or refractory peripheral T-cell lymphoma (r/r PTCL). The accepted review has triggered milestone payments from Spectrum Pharmaceuticals of $10 million in cash and one million of its shares (worth around $7.8 million). Topotarget could receive a further $25 million if the FDA grants approval, which is based on data from the BELIEF trial.

Analysts at Edison Investment Research said: “We raise our valuation of Topotarget by 95 million Danish Kroner ($17.4 million) to 1,434 million kroner (10 kroner/share), following the acceptance of filing and its FY13 results. We have also amended our estimates, the main change being the milestone payment of 97.8 million kroner for the acceptance. The potential $25 million milestone for approval is not included.”