Galena Biopharma licenses cancer pain drug Abstral

NEW YORK -- Galena Biopharma Inc. said Monday it acquired the U.S. rights to a fast-acting drug designed to treat severe pain in cancer patients.

Galena is acquiring a drug called Abstral from Orexo AB of Sweden. Abstral is a tablet form of fentanyl, a powerful pain drug, and it is designed to dissolve under the tongue within seconds. The Food and Drug Administration approval Abstral in January 2011 for use against bouts of severe and unpredictable "breakthrough" pain in patients who are already being treated with other opioid pain drugs, and whose bodies are adjusting to the medication _ meaning the medication is becoming less effective.

Shares of Galena Biopharma rose 7 cents, or 3.5 percent, to $1.99 in morning trading.

The Lake Oswego, Ore., company will pay Orexo $10 million upfront and will pay $5 million more within 12 months. Orexo will also get royalty payments of more than 10 percent on sales, and it can get additional payments based on sales targets.

The companies said Abstral is the best-selling drug of its kind in Europe, with $54 million in sales in 2012.

Abstral is Galena's first approved drug. It is researching several experimental products including the cancer treatment NeuVax, which is designed to induce immunity to breast cancer recurrence in certain patients. Galena is also studying NeuVax as a treatment for prostate cancer. The company said Monday that it wants to have revenue in 2014 to support further development of its drugs. Galena recently said it has enough cash on hand to stay in business into 2014.

Galena is taking out a $15 million loan to fund the acquisition of Abstral. It said the debt will mature in 2016.

View the original article here

Spectrum licenses Ligand multiple myeloma drug

NEW YORK -- Spectrum Pharmaceuticals Inc. said Thursday it licensed a potential treatment for multiple myeloma from Ligand Pharmaceuticals Inc.

Ligand's drug candidate is a form of melphalan, which is already used to treat multiple myeloma. The new form of the drug is designed to be given before the patient receives a round of autologous stem cell treatment, and the companies say it could allow for longer, safer, and stronger treatment because it could have fewer side effects.

The experimental formulation of melphalan eliminates ingredients that are reported to cause kidney and heart side effects. Those side effects force physicians to use smaller doses of the drug.

Multiple myeloma is a cancer of the blood that mainly affects older adults. Spectrum, based in Henderson, Nev., said about 20,000 cases are diagnosed each year.

The Food and Drug Administration has designated the treatment an orphan drug, which means similar products will be barred from the market for up to 7 years if it is approved. Spectrum is now responsible for clinical testing of the drug and expects to file for marketing approval in the first half of 2014.

Ligand said it will get an upfront license payment of $3 million and could receive more than $50 million in milestone payments. The San Diego company will also get royalties on sales of the drug if it is approved.

Ligand raised its financial guidance, saying it now expects to report net income of 47 to 51 cents per share in 2013 on $43 million to $46 million in revenue. It had forecast income of 35 to 39 cents per share on $41 million to $44 million in revenue.

Analysts expect net income of 41 cents per share and $43.1 million in revenue, according to FactSet.

For the first quarter, the San Diego company said its net income will be between 10 and 13 cents per share in the first quarter, and revenue will be between $10 million and $11 million. Analysts are forecasting a profit of 2 cents per share with $8.5 million in revenue on average.

Shares of Ligand rose 55 cents, or 2.5 percent, to $22.41 in afternoon trading, and Spectrum shares picked up 7 cents to $7.86.

View the original article here