Aurobindo Pharma’s subsidiary Acrotech Biopharma has agreed to acquire seven FDA-approved hematology/oncology products from Spectrum Pharmaceuticals in a deal valued at around $300m.
Under the deal, Spectrum will secure $160m in an upfront cash payment, while up to $140m in regulatory and sales-based milestones.
Spectrum Pharmaceuticals president and CEO Joe Turgeon said:
This divestiture marks a major strategic shift for Spectrum to ensure laser-focus on novel, oncology drug development and commercialization. The proceeds generated by the sale will significantly strengthen the financial position of the company, providing the capital to develop and commercialize our two late-stage pipeline assets, and placing us in a solid position to evaluate additional growth opportunities.
As part of the deal, Acrotech will acquire products such as Fusilev (levoleucovorin), Folotyn (pralatrexate injection), Zevalin (ibritumomab tiuxetan), Marqibo (vinCRIStine sulfate Liposome injection), Beleodaq (belinostat) for injection, Evomela (melphalan) for injection and Khapzory (levoleucovorin). The products are said to generate combined sales of $76.4m during the first three quarters of 2018.
The transaction has secured approval from the boards of directors of both firms Spectrum and Aurobindo.
Subject to regulatory approvals, the deal is expected to be completed within 90 days.
Jefferies is serving as exclusive financial advisor to Spectrum, while Paul Hastings is serving as exclusive legal counsel to the company.
Spectrum will secure $30m for FDA approval of Marqibo to treat large B-cell lymphoma, while $10m for FDA approval of the same product for any indication other than the B-Cell lymphoma indication, single vial or pediatric ALL.
Acrotech president Dr Ashish Anvekar said:
We are excited to jump-start our mission of helping cancer patients across the globe by delivering clinically differentiated medications and leveraging strategic partnerships. We look forward to welcome an experienced team of employees from Spectrum who are essential to our mission.
Acrotech Biopharma is engaged in the commercialization of advanced medications, while Spectrum is involved in the development and commercialization of drug products with main focus in hematology and oncology.