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Baxter and Cell Therapeutics enter a licensing agreement to develop and commercialize pacritinib.
Baxter and Cell Therapeutics, CCTI have entered into a worldwide licensing agreement to develop and commercialize pacritinib. Pacritinib is a investigational JAK2/FLT3 inhibitor with activity against genetic mutations linked to myelofibrosis, leukemia, and certain solid tumors. Pacritinib is currently in Phase III development for patients with myelofibrosis, a chronic malignant bone marrow disorder.
Under the terms of the agreement, Baxter gains exclusive commercialization rights for all indications for pacritinib outside the United States, and Baxter and CTI will jointly commercialize pacritinib in the US. Baxter will make an upfront payment of $60 million, which includes an equity investment in CTI of $30 million. In addition, CTI is eligible to receive clinical, regulatory, and commercial launch milestone payments of up to $112 million, $40 million of which relates to clinical milestones that may be achieved in 2014. Assuming regulatory approval and commercial launch, CTI may receive additional sales milestone payments. CTI will receive royalties on net sales of pacritinib in ex-US markets, and the companies will share US profits equally. Baxter will record a special pre-tax in-process research and development charge in the fourth quarter of 2013 of approximately $30 million.