U.S.-based health care company Baxter International Inc. has agreed to pay $900 million for two cancer drugs developed by Italian drug manufacturer Sigma-Tau Finanziaria SpA.
In a statement released on Tuesday, Baxter said the two drugs are designed to treat a rare form of blood cancer called acute lymphoblastic leukemia (ALL). Both drugs will be featured as part of the company's biopharmaceutical business, Baxalta, set to be launched this year.
Oncaspar, one of the drugs purchased by Baxter, is part of a multiagent chemotherapy procedure to treat patients suffering from ALL. It has been approved for sale in different countries including Poland, Germany and in the United States. The drug has generated around $100 million in yearly sales.
The other drug is still undergoing clinical trials before Baxter can make it available for sale.
"The Baxter BioScience legacy of delivering solutions for orphan diseases and small patient populations and our global presence positions us well to accelerate the growth of the Oncaspar portfolio globally," Baxter BioScience President Ludwig Hantson said.
"With Oncaspar, Baxalta will bring an established standard of care therapy to more patients worldwide through the pursuit of additional indications and regulatory approvals across the globe."
Baxter BioScience's chief of oncology David Meek said that Oncaspar is a welcomed addition to the company's expanding business in the field of oncology as it enhances their efforts in research and development in hematologic cancers.
Meek added that the acquisition of the drug will help Baxter gain an immediate footing in American and European markets through its "heritage of expertise" in treating cancer.
The deal with Sigma-Tau Finanziaria SpA will also give Baxter a new chemical entity called calaspargase pegol, which is being developed as a potential treatment for ALL. Developers believe it can reduce the frequency of dosing since calaspargase pegol has a longer shelf life compared with other drugs.
Baxter plans to study potential new indications for Oncaspar. This includes applying the treatment to other ALL patients with significant unmet needs and people diagnosed with acute myeloid leukemia (AML).
Sigma Tau Finanziaria CEO Andrea Montevecchi believes the agreement with Baxter BioScience will be beneficial not only to both companies, but to all acute lymphoblastic leukemia patients as well.
Acute lymphoblastic leukemia is known to rapidly cause white blood cells in the body to develop cancer. It is responsible for more than 80 percent of leukemia cases in children.
It is classified as a rare disease by the U.S. Food and Drug Administration.
According to the American Cancer Society, an estimated 6,250 new cases of acute lymphoblastic leukemia will be diagnosed in 2015.
Photo: Andra MIhali | Flickr
