Kamada Ltd. (TASE:KMDA) today announced a definitive agreement with Baxter International Inc. (NYSE: BAX), which will have exclusive commercial rights to Glassia (Alpha 1-Proteinase Inhibitor in the US, Australia, New Zealand and Canada.
Glassia, which was approved by the FDA on July 1, 2010, is provides chronic augmentation and maintenance therapy in individuals with emphysema due to congenital deficiency of alpha1-proteinase inhibitor, also known as alpha1-antitrypsin (AAT) deficiency. AAT deficiency is an under-diagnosed hereditary condition that may result in early onset emphysema. Baxter expects to introduce Glassia in the US during the fourth quarter of 2010, and will pursue distribution licenses for Glassia in the other countries for which it has obtained rights.
Baxter BioScience Global BioPharmaceuticals president Larry Guiheen said, "The agreement with Kamada underscores Baxter's commitment to expanding the diagnosis of alpha1-antitrypsin deficiency by bringing new and innovative therapeutic options to Alpha-1 patients and their treating physicians."
The distribution agreement includes an upfront cash payment by Baxter of $20 million. The agreement also includes a provision under which Kamada has agreed, for a limited period of time, not to initiate or enter any discussions or agreements relating to the commercialization of Glassia in certain other countries and for Kamada's investigational next-generation inhaled therapy.
Under a separate license agreement, Baxter has been granted the right to process Glassia and will seek necessary regulatory approvals to enable it to do so. Under this agreement, Baxter may make additional payments of up to $25 million related to milestone achievements and the implementation of technology transfer related to the production of the therapy by Baxter, as well as royalties on product sales.
Kamada's share price was up 17.3% in early afternoon trading on the TASE at NIS 22.60.
Published by Globes, Israel business news - www.globes-online.com - on August 24, 2010
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