PBR Staff Writer Published 19 July 2013
Biotechnology company Spectrum Pharmaceuticals (SPPI) has entered into an agreement to acquire California-based biopharmaceutical firm Talon Therapeutics (TLON).
Spectrum will hold worldwide rights to Marqibo for the treatment of leukemia, a Phase 2 product Menadione Topical Lotion to treat skin toxicity associated with epidermal growth factor receptor anti-cancer agents, such as ERBITUX.
As per the terms of the deal, Talon stockholders will receive an aggregate upfront cash consideration of approximately $11.3m from Spectrum along with issuance of 3 million shares of its common stock.
This is in exchange for the cancellation of all of the outstanding indebtedness under Talon’s credit facility.
Spectrum will also pay Talon stockholders contingent value rights (CVRs) in an aggregate of up to $195m in future cash payments upon the achievement of certain one-time sales-based milestones for Marqibo and an approval-based milestone for Menadione Topical Lotion.
Marqibo is expected to be launched by Spectrum with the same sales force that sells its current oncology drugs, FOLOTYN (pralatrexate injection) and ZEVALIN (ibritumomab tiuxetan) injection for intravenous use.
Spectrum Pharmaceuticals president, chief executive officer, chairman, Dr Rajesh Shrotriya said, “With this acquisition, we have added another drug that fits very well with our hematology and oncology franchise and addresses an unmet medical need for cancer patients.”
HC Wainwright & Co is Spectrum’s exclusive advisor, while Stradling Yocca Carlson & Rauth, PC is acting as legal counsel in relation to the transaction.