Wragge & Co’s Life Sciences team has advised biotechnology company Chroma Therapeutics Ltd on a co-development and licensing agreement with biopharmaceutical company Cell Therapeutics Inc. (CTI).
Under the agreement, CTI will make an upfront payment of $5 million and an additional milestone payment of $5 million when phase III clinical trials are initiated. Subject to a funding cap of $50 million over the first three years, CTI will be responsible for 75 per cent of development costs, with Chroma responsible for the remaining 25 per cent.
The deal provides CTI with exclusive rights to market and co-develop Chroma’s drug ‘tosedostat’ in North, Central and South America, while Chroma will oversee development and market the drug in the rest of the world. Tosedostat is a potential treatment for certain aggressive forms of blood-related cancers which are currently untreatable.
Partner Patrick Duxbury led the deal, with support from solicitor Mathilda Davidson. Both worked closely with Chroma’s chief executive officer Ian Nicholson, chief financial officer Richard Bungay and director of business development Elizabeth Roper.
Patrick Duxbury said: “The deal was crucial for Chroma in providing a partner to develop and market tosedostat in the Americas, a key market for the new drug. Collaborations where rights are split across jurisdictions are always complex to negotiate. Our in-depth life sciences expertise and experience of cross-border transactions enabled us to reach a successful conclusion for Chroma.”
Ian Nicholson added: “We have a long-standing relationship with Wragge & Co built on its excellent understanding of our business objectives and sound commercial advice in steering complex transactions to a rapid conclusion.”
Chroma Therapeutics is a UK-based private drug discovery and development company. It focuses on developing novel small molecule drugs and a broad and innovative product pipeline to treat high-prevalence cancers and inflammatory disorders. Wragge & Co has provided full-service advice to Chroma for seven years. In 2009, the firm advised Chroma on a $1 billion collaboration with GlaxoSmithKline.
CTI is a Seattle-based biopharmaceutical company that develops and commercialises anti-cancer drugs. It was advised by O’Melveny and Myers LLP.
Wragge & Co’s Life Sciences team comprises full-service expertise in IP, corporate, antitrust, regulatory and dispute resolution matters. With experience of global patent infringement actions, European regulatory compliance, M&A transactions and cross-border licence and collaboration agreements, its clients include AstraZeneca, Astex Therapeutics and the Medical Research Council.
The team advised Cambrex Corporation on its $20 million acquisition of a 51 per cent stake in Indian pharmaceutical company Zenara. Other highlights include advising long-standing clients Astex Therapeutics, Eisai and MedImmune on a number of high-value transactions over the past five years. Shortly after advising Eisai on a €95 million licence and co-promotion agreement for the treatment of epilepsy, the team advised Astex on a £300 million drug discovery alliance with GlaxoSmithKline.
