Spectrum acquires Targent's LFA assets

The USA's Spectrum Pharmaceuticals has entered into a definitive agreement to acquire all of the oncology drug assets of US privately-held drugmaker Targent. The key product in the portfolio is levofolinic acid, the pure active isomer of calcium leucovorin, a component of standard-of-care cancer drug 5-fluorouracil, which is used in regimens for the treatment of colorectal and other malignancies, and which is also employed after high-dose methotrexate.

A New Drug Application for LFA has been filed with the Food and Drug Administration for the osteosarcoma indication. In addition, it has been granted Orphan Drug status for colorectal cancer in combination with 5-FU and for osteogenic sarcoma in use with metheotrexate rescue. LFA is currently marketed by Wyeth, Sanofi-Aventis and others in certain parts of the world, including Europe and Japan, while Spectrum will obtain the rights in the USA, Canada and Mexico. The California-headquartered firm estimates that the current annual market for LFA outside North America is approximately $200.0 million.

Under the terms of the deal, Spectrum has agreed to issue to Targent an aggregate amount of 600,000 shares of its common stock at closing. Only one third of these will be registered for resale but not the reaminder, which will therefore be subject to restrictions. On achieving certain regulatory and sales milestones, Targent is eligible for undisclosed cash payments as well as up to an aggregate amount of 650,000 shares of Spectrum stock.