Cell Therapeutics Signs Exclusive Deal with Novartis
Cell Therapeutics (CTIC) has inked an exclusive deal giving pharmaceutical giant Novartis (NVS) the right to develop and commercialize lung cancer drug Xyotax, and an option to do the same with Pixantrone, a drug to treat hematological malignancies.
The deal could be worth as much as $285 million U.S. for CTIC. This deal makes sense for both companies as Cell Therapeuctics was buring its cash reserve fairly quickly, having only about $48 million on hold, while Novartis gets its hands on a potentially blockbuster drug that rivals Bristol's big hit Taxol. Xyotax is currently in phase 3 clinical trials, so Novartis should not wait relatively long to find out whether its investment was a clever one.
Clearly investors welcomed the news as CTIC stock rose almost 7% to end trading at $2.08 a share.
Cell Therapeutics (CTIC) has inked an exclusive deal giving pharmaceutical giant Novartis (NVS) the right to develop and commercialize lung cancer drug Xyotax, and an option to do the same with Pixantrone, a drug to treat hematological malignancies.
The deal could be worth as much as $285 million U.S. for CTIC. This deal makes sense for both companies as Cell Therapeuctics was buring its cash reserve fairly quickly, having only about $48 million on hold, while Novartis gets its hands on a potentially blockbuster drug that rivals Bristol's big hit Taxol. Xyotax is currently in phase 3 clinical trials, so Novartis should not wait relatively long to find out whether its investment was a clever one.
Clearly investors welcomed the news as CTIC stock rose almost 7% to end trading at $2.08 a share.
posted by Nico at
8:52 PM
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