|New Positive Key Development for Spectrum (SPPI) with more to come|
|Thursday, 06 August 2009 11:30|
Spectrum Pharmaceuticals, Inc. (Nasdaq: SPPI), the biotechnology company with a primary focus in oncology, today announced that it has acquired 100% rights to RenaZorb®, a novel compound, being developed for chronic kidney disease- which is also a family of compounds represented by SPI-014, also known as RZB-014). The lanthanum-based nanotechnology compound with potent and selective phosphate binding properties, for all human and non-human indications.
This latest development, along with the two upcoming FDA decisions the company has as part of it's pipeline process, shows once again why so many biotech investors are excited about it's future and why consensus recommendations among analystis make this a "buy."
“While focused on the oncology field, we remain opportunistic with our other value-driving assets such as RenaZorb, a drug candidate with the potential to reduce dosage burden for chronic kidney disease patients and enable more effective management of their disease,” said Rajesh C. Shrotriya, MD, Chairman, Chief Executive Officer, and President of Spectrum Pharmaceuticals. “Having full rights to this selective and potent nanotechnology-based drug candidate will facilitate our development and partnering strategy for this asset.”
In 2005, the Company acquired the worldwide license to develop RenaZorb for all human therapeutic uses from Altair Nanotechnologies. Today’s acquisition includes all uses and thus provides full rights, and intellectual property, for the asset. In consideration for the license, Spectrum will pay to Altair a total of $750,000 in restricted common stock. According to a second news release Thursday morning, the patent assignment amends and restates an existing, limited licensing agreement for Renazorb(TM) and Renalan(TM) compounds to Spectrum Pharmaceuticals, which was announced in January 2005. Spectrum Pharmaceuticals will now have exclusive worldwide rights to Renazorb(TM), Renalan(TM), and any related compounds in any field of use.
“Given the importance of effectively controlling serum phosphate levels for patients with chronic kidney disease, there has been significant recent activity to extend the use of phosphate binding medications to a wider proportion of the 26 million Americans currently suffering with CKD,” said Amar Singh, Chief Commercial Officer. “Given this activity, and the limitations of existing phosphate binding medications, the market opportunity for new safe and effective phosphate binding medications has significantly increased not only in the U.S. but in other major pharmaceutical markets such as Europe, China, and Japan. Having full title to this asset allows us to maximize the value of this opportunity.”
In addition, the company today announced the date and time for its second quarter 2009 corporate update and pipeline review conference call:
Disclosure: Long SPPI