Spectrum Pharmaceuticals Inc has acquired certain rights to D-63153, a fourth generation LHRH (Luteinizing Hormone Releasing Hormone, also known as GnRH or Gonadotropin Releasing Hormone) antagonist, which has been in clinical trials in Europe, from Zentaris GmbH, a wholly owned subsidiary of AEterna Zentaris Inc.

Under the terms of the agreement, Spectrum acquired an exclusive license to develop and commercialize D-63153 for all potential indications in North America (including Canada and Mexico) and India. Zentaris received an upfront payment of cash and equity, and is eligible to receive payments upon achievement of certain development and regulatory milestones, in addition to royalties on potential net sales. Zentaris retains exclusive rights to the rest of world, but will share with Spectrum upfront and milestone payments, royalties or profits from potential sales in Japan. Financial details were not disclosed, release from Spectrum informed.

"The acquisition of rights to this compound, which has so far been in clinical trials in Europe, represents an important milestone in expanding Spectrum's product portfolio," stated Luigi Lenaz, president of Oncology Division, Spectrum Pharmaceuticals. "We are delighted to have the opportunity to work with AEterna Zentaris team as well as someone of Professor Engel's caliber and look forward to developing and commercializing D-63153. Based on clinical data accumulated in the past several years on D-63153, we believe that this 4th generation LHRH antagonist may unlock the commercial potential of this class of agents. The discovery of LHRH and its antagonists was the subject of a Nobel Prize in Medicine in 1977. We plan to expand the development of D-63153 by initiating additional trials in one or more indications as soon as feasible, possibly before the end of 2004," he added.

Rajesh Shrotriya, chairman of the Board, CEO and president of Spectrum Pharmaceuticals, Inc stated, "The acquisition of this oncology asset is an important step in implementing our strategy and achieving one of our stated goals for 2004. Our overall strategy is to build an extensive portfolio of anti-cancer and related compounds that span all stages of development and that can be used either as a single agent or in combination with other currently marketed anti-cancer treatments to enhance their safety and efficacy."

"We are delighted to have a collaborator with the drug development expertise of Spectrum's management and the financial strength that Spectrum possesses," professor Juergen Engel, chairman and managing director of Zentaris GmbH and chief operating officer of AEterna Zentaris said adding, "We believe that this is the beginning of a long-term, productive relationship. Our complementary skills and experience should enhance and expedite the development of this promising compound."

D-63153 has the potential to treat hormone-dependent cancers as well as benign, proliferative disorders (such as benign prostatic hypertrophy and endometriosis). The combined US market opportunity for the potential initial indications (hormone-dependent prostate cancer, benign prostatic hypertrophy and endometriosis) is estimated to exceed $4 billion.