Subsidiaries of Baxter International Inc and Cerus Corporation have closed the transaction with BioOne Corporation for the commercialization in parts of Asia of the pathogen inactivation technology, known as Intercept Blood System for platelets.
Following receipt of an independent appraisal and approval by BioOne shareholders, BioOne has made a payment of $15 million, which will be shared equally between Baxter and Cerus.
"I am very pleased that we are moving forward with BioOne toward the goal of bringing pathogen inactivation technology for platelets to the Asian market," Claes Glassell, president and CEO of Cerus Corporation said adding, "Furthermore, I am encouraged that an independent appraisal of the transaction supports the potential implementation of a pathogen inactivation technology in Asia."
Baxter and Cerus announced the original agreement with BioOne in July. Under the terms of the agreement, BioOne will be responsible for commercializing the pathogen inactivation technology for platelets in Japan, China, Taiwan, South Korea, Thailand, Vietnam and Singapore. The agreement calls for additional milestone payments and royalties on future product sales. In connection with the agreement, Cerus made an approximate $1.2 million equity investment in BioOne.
BioOne was formed with the mission of improving the safety of blood products in Asia. The founder, Dr. Akihiro Shimosaka, was formerly head of licensing for Kirin Pharmaceuticals and was instrumental in the formation and management of the highly successful Kirin-Amgen joint venture, which developed and commercialized EPO and G-CSF in Asia. BioOne is being funded by equity investments from major Japanese venture capital firms and other corporations.
More than one million platelet transfusions are performed annually in the Asian territory covered by the agreement. Platelets support blood clotting, which helps to prevent or stop bleeding, and are usually transfused to patients undergoing chemotherapy, heart bypass surgery and other major surgical procedures.