Abraxis BioScience, Inc., an integrated, global biopharmaceutical company, has completed its acquisition of the AstraZeneca US branded anaesthetic and analgesic injectable product portfolios.
Abraxis will have agreements with most major Group Purchasing Organizations (GPOs), representing the majority of US hospitals, and will assume responsibility for over 700 individual contracts for this portfolio of drugs. Products in this acquisition encompass over 100 dosage forms and include the leading branded anaesthetic agent, Diprivan (propofol), and Naropin (ropivacaine), as well as a comprehensive suite of local anaesthetics including EMLA Cream (Eutectic Mixture of Lidocaine and Prilocaine), Xylocaine (lidocaine), Polocaine (mepivacaine), Nesacaine (chloroprocaine HCl Injection, USP), Sensorcaine (bupivacaine), and Astramorph (morphine sulfate injection, USP). On April 26, 2006, Abraxis announced the execution of a definitive agreement to acquire these products.
"This acquisition of these products significantly enhances our market-leading injectable drug portfolio and underscores our on-going commitment to provide a broad range of both multi-source and branded injectables to hospitals, clinics, and ultimately the patients they treat," said Patrick Soon-Shiong, M.D., chief executive officer and chairman of the board of Abraxis BioScience.
Abraxis, through its Abraxis Pharmaceutical Products division, manufactures the largest anti-infective injectable product portfolio and one of the broadest portfolios of oncology and critical care products. This product acquisition of over 100 dosage forms, combined with the over 300 dosage forms currently manufactured and marketed, together with the eight FDA approvals received this year and the 23 ANDA's currently under review by the FDA, positions Abraxis to be one of the largest manufacturers of injectable pharmaceutical products for the critically ill patient.
Under the final terms of the agreement, Abraxis has acquired these products for a total cash consideration of $334 million. Abraxis paid AstraZeneca $259 million at the close and will pay $75 million on the first anniversary of the close. AstraZeneca will exclusively supply to Abraxis these products for an initial term of five years for the US market.
AstraZeneca will continue to administer the distribution of this portfolio of drugs for a limited period of time.
AstraZeneca has also granted Abraxis BioScience the right of first offer to purchase or license its branded anesthetics and analgesics portfolio outside of the U.S. should AstraZeneca decide to divest these assets. In addition, AstraZeneca has agreed that Abraxis will be its preferred partner for consideration of certain proprietary injectable products when patents on these products expire.
On July 1, 2006, Abraxis and AstraZeneca will officially launch their five and a half year U.S. co-promotion of Abraxane. This robust co-promotion will greatly increase the share of voice for the product by doubling the sales force and promotional investment. In addition, AstraZeneca will share the cost of certain clinical trials that are part of the overall clinical development programme.
The US Food and Drug Administration approved Abraxane for Injectable Suspension (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) in January 2005 for the treatment of breast cancer after failure of combination chemotherapy for metastatic disease or relapse within six months of adjuvant chemotherapy. Prior therapy should have included an anthracycline unless clinically contraindicated.