BioMarin Sells Phase III Breast Cancer Drug to Medivation for $570 Million
Medivation will pay BioMarin $410 million upfront, and up to another $160 million in milestone payments. If marketed, BioMarin will receive mid-single digit royalties. The deal is expected to close by the end of this year.
Talazoparib in an oral poly ADP ribose polymerase (PARP) inhibitor. It is currently being studied in a Phase III trial for deleterious germline BRCA 1 and BRCA 2 mutations and locally advanced and/or metastatic breast cancer.
“Acquiring all worldwide rights to talazoparib provides Medivation with a transformational opportunity to diversify and expand our proprietary portfolio and global oncology franchise,” said David Hung, president and chief executive officer of Medivation in a statement. “PARP inhibitors are an exciting class of oncology therapeutics that have been associated with promising activity across multiple tumor types, including breast and prostate cancer.”
On June 17, BioMarin announced positive results for BMN-111 (vosoritide) to treat achondroplasia, the most common form of human dwarfism. That drug was in a Phase II trial and received Orphan designation in both the U.S. and Europe. Raluca Pancratov, an analyst with SunTrust Robinson Humphrey indicated in a research note that if approved, the drug could bring in sales of about $700 million globally.
BioMarin stock has been on a steady rise for the last year, although they have dropped recently. On July 17, 2014 shares traded for $55.78 and rose to $67.27 on Oct. 14, 2014. On Mar. 30, 2015, shares traded for $129.14. Shares are currently trading for $118.50.
Medivation stock has been significantly more volatile and on an apparent downward trend since May. Shares traded for $89.63 on Oct. 15, 2014, rose to $114.89 on Nov. 28, then dropped by to $98 on Dec. 23. They jumped on Mar. 20, 2015 to $135.56, then settled to $120.74 on April 30 and rose again to $131.63 on May 28. Shares then dropped to $95.74 on July 29 and are currently trading for $87.50.
This sale seems to indicate that BioMarin wants to continue to focus on rare diseases. Medivation can continue to focus on cancer treatment. Medivation’s primary product currently is Xtandi, a drug for prostate cancer, which battles in the market against Johnson & Johnson (JNJ)’s Zytiga.
August 24, 2015
By Mark Terry, BioSpace.com Breaking News Staff
Source: BioSpace Featured News