Baxter acquires $900m oncology portfolio for spin-out-in-waiting
This article was originally published in Scrip
Baxter has bolstered the oncology offering of its soon to be spun out BioScience unit – Baxalta – through the acquisition of the Oncaspar (pegaspargase) product portfolio from Sigma-Tau Finanziaria of Italy for $900m.
Leerink analysts view the deal as a "smart strategic move, as soon-to-be Baxalta begins what we believe will be an effort to reshape and revamp the portfolio in order to further diversify away from the hemophilia business that is facing increasing competition."
The deal includes the marketed biologic treatment Oncaspar, the investigational biologic calaspargase pegol, and an established oncology infrastructure with clinical and sales resources.
Baxter's BioScience portfolio is currently predominantly built around hemophilia, with around half its sales (about $3bn) generated from products to treat bleeding disorders.
"[Baxalta] is already making progress on pacritinib in collaboration with CTI BioPharma for myelofibrosis and [Merrimack's] MM-398 for pancreatic cancer," note the Leerink analysts. "Baxter will be presenting data at ASCO later this month having already met its primary endpoint in [pacritinib's] PERSIST-1 Phase III trial and also hopes to file regulatory approvals for MM-398 as part of an exclusive licensing agreement with Merrimack Pharmaceuticals."
Oncaspar is a first-line biologic used as part of a multi-agent chemotherapy regimen to treat acute lymphoblastic leukemia (ALL). It is currently marketed in the US, Germany, Poland and certain other countries and has around $100m in annual sales.
"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," said Dr Ludwig Hantson, president of Baxter BioScience.
"Oncaspar is a strong strategic fit for our rapidly expanding oncology business, as it complements our R&D programs in hematologic cancers," added David Meek, head of oncology for Baxter BioScience. "The acquisition provides an immediate commercial footprint in the US and Europe."
In addition to the currently marketed formulation of Oncaspar, Baxter BioScience intends to continue the development of a lyophilized formulation, aimed at enhanced product stability.
As part of the deal, Baxter is also acquiring the related new chemical entity calaspargase pegol, in development for the treatment of ALL with an increased shelf life that is expected to reduce dosing frequency. The company also plans to investigate Oncaspar for potential new indications, including additional ALL patient populations and acute myeloid leukemia (AML).
The closing of the transaction is expected in the third quarter.
Baxter and Baxalta have investor meetings scheduled for 18 May and 19 May respectively, where analysts expect further clarity on the businesses post-split.
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