Cell Therapeutics licenses pacritinib to Baxter

Cell Therapeutics Inc. (NASDAQ:CTIC; Milan:CTIC) granted Baxter International Inc. (NYSE:BAX) exclusive, worldwide rights to commercialize pacritinib. Cell Therapeutics will receive $60 million up front, including $30 million in cash and a $30 million equity investment from Baxter. Cell Therapeutics is also eligible for up to $302 million in milestones, plus ex-U.S. royalties. The companies will jointly commercialize pacritinib and share profits in the U.S. Starting Jan. 1, Cell Therapeutics will be responsible for the first $96 million in U.S. and EU development costs. After $96 million, Cell Therapeutics and Baxter will split "generally applicable worldwide" development costs 25/75 and U.S. costs 50/50, but Baxter will be responsible for 100% of purely ex-U.S. costs. Cell Therapeutics said the companies will form a joint development committee for pacritinib.

Last year, Cell Therapeutics acquired pacritinib from S*BIO Pte. Ltd. (Singapore) for $15 million in cash and $15 million in Cell Therapeutics preferred stock. The orally available dual inhibitor of Janus kinase-2 (JAK-2) and FMS-like tyrosine kinase 3 ( FLT3; CD135) is in the Phase III PERSIST-1 trial for myelofibrosis (MF), with top-line data expected in 2H14 (see BioCentury Extra, April 19, 2012). ...