Pharma firm signs £141m global deal
Clinigen, the Burton-based pharma firm, has signed an exclusive licensing and distribution agreement which could net the firm £141m a year.
The listed firm has landed a deal with with Porton Biopharma Limited (PBL) to commercialise Erwinase®, which is approved for patients with Acute Lymphoblastic Leukaemia (ALL) who have developed hypersensitivity to E. coli-derived asparaginase in 19 countries, including the US, Europe and Japan.
In the year to 31 December 2019, net sales of Erwinase were £141m. Whilst the agreement will start on 1 January 2021, it is anticipated that net sales for Clinigen will begin in the second half of 2021 as the product is transitioned from PBL’s current licensing partner. PBL will maintain the trademarks and manufacture the product, whilst Clinigen will be responsible for product marketing, packaging, labelling, storage and distribution of the product.
Clinigen will pay PBL £5m upfront in cash consideration plus future sales-based milestone payments of up to £20m, alongside tiered royalty payments based upon worldwide net sales of Erwinase.
Shaun Chilton, group chief executive, Clinigen, said: “This licensing agreement fits with our strategy to partner with pharmaceutical companies to expand and extend the lifecycle of their products by utilising our global platform and expertise in the supply and distribution of both unlicensed and licensed medicines.
“As part of our portfolio in oncology and haematology, Erwinase strengthens our commercial offering in key markets and will be a priority product for the Group. The agreement will ensure healthcare professionals have the broadest possible access to this important treatment for their patients.
“As the COVID-19 situation continues to evolve, our priority remains the safety of our employees and our clients. We have also performed well during these challenging times. Our unique business has the international reach and capability to continue to offer a meaningful contribution to helping our customers and partners at a time when they need us the most.”
