Wragges advises on £55m cancer drug deal
BIRMINGHAM law firm Wragge & Co’s life sciences team has completed another international deal. It advised ProStrakan Group plc on a cross-border licensing and distribution agreement with Sweden-based pharmaceuticals company Orexo AB.
The deal is Wragge & Co’s second major instruction from ProStrakan, the international pharmaceutical company which is owned by Japan-based Kyowa Hakko Kirin Co. Ltd (KHK) and has its UK headquarters in Galashiels.
Under the agreement, ProStrakan will acquire the rights to market the cancer drug ‘Abstral’ in Europe, while Orexo will market the drug in the US. ProStrakan will also assume Orexo’s interests in the companies’ joint venture in the Nordic region and acquire existing Abstral partnership agreements in the rest of the world, excluding Japan.
The deal sees ProStrakan provide £55m to Orexo over three years, plus further royalty and milestone payments once sales achieve certain levels.
Wragges’ head of life sciences Patrick Duxbury led the deal, with support from solicitor Mathilda Davidson. Both worked closely with ProStrakan’s chief executive Tom Stratford.
Duxbury said: “An important pain management drug, Abstral is used by clinicians to manage episodes of breakthrough pain experienced by cancer patients already receiving opioid analgesics for chronic pain.
“This deal marks a key milestone in ProStrakan’s growth strategy. Achieving the best commercial outcome for the client drew on our in-depth life sciences expertise, international experience and ability to handle the complex nature of these specialist arrangements.”
