Novartis signs $285m deal for lung cancer drug

Novartis has signed a new worldwide licensing agreement for Xyotax, an investigation therapy for non-small cell lung cancer (NSCLC) developed by Cell Therapeutics.

The drug, currently in phase III development, is based on paclitaxel but is chemically linked with a biodegradable polyglutamate polymer, forming a new compound that is undergoing trials to determine whether Xyotax has superior clinical survival times compared to paclitaxel.

Cell Therapeutics stands to gain $270 million (143 million pounds) from product registration and sales of Xyotax, as well as receiving a $15 million equity investment from Novartis.

In addition, the two companies also agreed a deal for another investigational Cell Therapeutics compound, pixantrone. The treatment is designed to promote anti-tumour activity but with reduced cardiac toxicity, commonly associated with anthracyclines. If Novartis decides to take the drug into development, Cell Therapeutics would receive $7.5 million, with the potential for $104 million in milestones for sales and regulatory approvals.

James A Bianco, president and chief executive of Cell Therapeutics, remarked: “This agreement brings the strength of one of the most innovative leaders in oncology to the development and commercialisation of Xyotax, an agent that could be demonstrated in ongoing trials to prolong survival in women with lung cancer and potentially become the first gender specific therapy for this disease.”

He also said that pixantrone could realise its potential to be a “market leader” in blood-related cancer drugs.

Cell Therapeutics, which specialises in research for cancer drugs, also operates collaborations with Cephalon and PG-TXL.