Clinigen Group acquires oncology support product from Novartis

AIM-listed pharmaceutical products and services business Clinigen Group has acquired Cardioxane (dexrazoxane) from Novartis for 33m dollars in cash, payable in two tranches.

AIM-listed pharmaceutical products and services business Clinigen Group has acquired Cardioxane (dexrazoxane) from Novartis for 33m dollars in cash, payable in two tranches.

Under the terms of the agreement, Clinigen will assume responsibility for manufacturing, registration, distribution, and commercialization of the product in countries where current marketing authorizations exist. This includes European, Asian and Latin American territories.

Cardioxane, an oncology support therapy, is a cardioprotective agent used to prevent the cardiotoxicity of anthracycline chemotherapy for patients with advanced and/or metastatic breast cancer.

According to Clinigen, there is an opportunity to revitalize Cardioxane- which it said has no direct licensed competition in the anthracycline therapy cardioprotection space- by utilizing new commercialization, market and indication strategies over the next five years.

The group said that historic revenues for Cardioxane have been approximately $11-12m per annum. Clinigen is targeting a gross margin of 60%.

Latin America seen as strong marketAccording to the group, Latin America is a strong market for Cardioxane, and is of particular interest to Clinigen, because it is a territory in which the group wishes to expand its reach and which may improve access routes for existing portfolio products such as Foscavir, as well as products that Clinigen may acquire in the future.

Peter George, Chief Executive Officer of Clinigen, said: "Acquiring Cardioxane from Novartis is another major step forward for us".

He added: "Cardioxane fits particularly well within our portfolio. We have been looking for medicines that complement Foscavir and Cardioxane does this by extending our role in oncology support. Together with our recent addition of VIBATIV, which further builds on our anti-infective capability, we are delivering on our mission to supply the right drug to the right patient at the right time."

Clinigen Group's share price was up 7.59% to 255p at 14:36 on Tuesday.

MF

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

The electric-car bubble could get an awful lot bigger from here
Renewables

The electric-car bubble could get an awful lot bigger from here

The switch to electric cars is driving a huge investment bubble. But that’s not necessarily a bad thing, says John Stepek. Fortunes will be made and l…
24 Sep 2020
Can Rishi Sunak’s winter plan save the UK economy?
UK Economy

Can Rishi Sunak’s winter plan save the UK economy?

With his Winter Economic Plan, chancellor Rishi Sunak is hoping to support the economy through the dark months ahead as restrictions tighten again. Jo…
25 Sep 2020
The rising dollar is proving bad news for most other assets – will it last?
Investment strategy

The rising dollar is proving bad news for most other assets – will it last?

Precious metals, stocks and pretty much every other asset has taken a tumble as the US dollar strengthens. Dominic Frisby looks at how long this trend…
23 Sep 2020