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.
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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.
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