CTI will make an upfront payment of $15 million and issue $15 million shares of unregistered preferred stock convertible into common stock in CTI. The agreement also includes regulatory success- and sales-based milestone payments, as well as single digit royalties on net sales. CTI will be solely responsible for development and commercialization activities of pacritinib worldwide.
Pacritinib is a highly selective JAK2 (Janus Associated Kinase 2) inhibitor that has demonstrated encouraging clinical benefit in phase I and II clinical studies in patients with primary myelofibrosis (MF) or MF secondary to other myeloproliferative neoplasms (MPN). Pacritinib has orphan drug designation in the U.S. and Europe for myelofibrosis.
"The acquisition of pacritinib is aligned with our strategy of becoming a leader in the treatment of blood related cancers and disorders," said James A. Bianco, M.D., CEO of Cell Therapeutics. "With Pixuvri approaching approval and launch in the E.U., and tosedostat and pacritinib entering phase III, our late stage portfolio addresses a full complement of blood related cancers ranging from MPN to MDS, leukemia and lymphoma."
The agreement will be subject to satisfaction of certain closing conditions. The terms of the agreement will be provided in more detail in a Form 8-K to be filed with the U.S. Securities and Exchange Commission.