Abraxis BioScience Acquires Shimoda Biotech and Platco Technologies
Friday April 4, 8:00 am ET
-- Acquires Pipeline of Novel Cyclodextrin-Based Products and Next Generation Platinum-Based Oncology Compounds
-- Company to Receive Royalty Stream and Milestone Payments from Recently Approved Dyloject(R) Product for Postoperative Pain
LOS ANGELES--(BUSINESS WIRE)--Abraxis BioScience, Inc. (NASDAQ:ABII - News), a fully integrated biotechnology company, today announced the completion of the acquisition of Shimoda Biotech (Pty) Ltd and its subsidiary, Platco Technologies (Pty) Ltd, located in Plettenberg Bay, South Africa.
Shimoda Biotech focuses on the development of new pharmaceutical products by combining successful off-patent molecules with a novel cyclodextrin drug delivery platform, seeking to exploit the faster onset and improved bioavailability characteristics of that platform. Platco Technologies focuses on the development of novel platinum-based anti-cancer drugs.
Under the terms of the agreement, Abraxis acquired 100% of the equity of both Shimoda and Platco for an initial upfront payment at closing of $15 million, plus potential additional payments upon the achievement of specified milestones.
Shimoda’s first cyclodextrin-based product, Dyloject® (diclofenac sodium solution for injection), is an injectable painkiller for the treatment of post-surgical pain. Dyloject® is the world’s first solubilized intravenous formulation of diclofenac. Diclofenac is one of the most widely prescribed non-steroidal anti-inflammatory drugs (NSAID).
Dyloject® was launched in December 2007 in the United Kingdom by Javelin Pharmaceuticals (AMEX:JAV - News) under an exclusive worldwide license agreement with Shimoda pursuant to which Shimoda will receive milestone payments and royalties based on sales of Dyloject®. Javelin currently intends to file additional marketing applications through the mutual recognition process in a number of European Union member countries, including Germany, Europe’s largest market for prescription injectable pain medications. Additionally, final Phase 3 clinical trials were initiated in the U.S. in the second half of 2006 and currently are ongoing. Data from these studies are expected in mid-2008. Currently, there is no IV diclofenac available in the U.S.
Shimoda’s second cyclodextrin-based product candidate is an oral tablet formulation of diclofenac that offers fast relief for a wide range of acute pain indications such as headache, migraine, sore throat and musculoskeletal pain. To date, four clinical studies have been conducted. A number of additional cyclodextrin-based product candidates are in development at the pre-clinical stage.
Shimoda has several additional ongoing early stage projects, including a licensed drug delivery platform based on virus-like particles that may facilitate the targeted delivery of drug compounds, genetic material, including DNA and RNA, and therapeutic proteins.
Platco Technologies, a scientific team of world-class experts on platinum group metals chemistry, has developed several next generation platinum-based anti-cancer compounds, which have shown promising pre-clinical results compared to currently marketed proprietary platinum-based compounds.
“We believe Shimoda and Platco are valuable acquisitions for Abraxis, offering a revenue stream from Dyloject®, a product pipeline based on a novel cyclodextrin delivery platform, and access to promising next-generation platinum-based compounds. These compounds can expand Abraxis’ growing oncology franchise and target global markets in excess of $2 billion,” said Patrick Soon-Shiong, M.D., Chairman and Chief Executive Officer of Abraxis BioScience.
“Joining forces with Abraxis is an excellent opportunity to advance our product development efforts with a global company that has in-depth knowledge in our target markets,” said Gregory Gilbert, Chief Executive Officer of Shimoda. “We look forward to working together and leveraging the value we have created through our internal efforts and partnerships.”
surf's up......crikey
