Pharmacyclics Could Get $975M in J&J License Deal
From Associated Press (December 9, 2011)
NEW YORK -- Pharmacyclics Inc. said Thursday it will work with a division of Johnson & Johnson to develop an experimental blood cancer drug as part of a deal that could be worth more than $1 billion.
J&J's Janssen Pharmaceutical Cos. business will pay Pharmacyclics $150 million upfront for the rights to PSI-32765, a drug that is being studied as a treatment for non-Hodgkin lymphoma, chronic lymphocytic leukemia, and multiple myeloma. If the drug progresses through clinical development and is approved for several different cancers, Pharmacyclics could get another $825 million. Janssen will pay 60 percent of development costs and the companies will share profits from the drug equally.
Pharmacyclics, of Sunnyvale, Calif., said it is running mid-stage clinical trials of PSI-32765. It is testing the drug as a treatment for different types of lymphoma and leukemia.
The companies said that Pharmacyclics will take the lead in the drug's U.S. commercial strategy. It will record all sales and the companies will market the drug together. In other countries, Janssen will lead commercialization and record the sales.
The deal is expected to reduce the 2011 profit of New Brunswick, N.J.-based Johnson & Johnson by 4 to 5 cents per share.
Pharmacyclics does not have any products on the market. The company's shares fell 2.5 percent to close at $14.62 Thursday, and gained 28 cents to $14.90 in aftermarket trading. Johnson & Johnson stock lost 67 cents to close at $63.78.
Posted: December 2011