Pfizer Inc. (PFE) has reached an agreement to help Protalix
Biotherapeutics Inc. (PLX) develop and commercialize a treatment
for Gaucher's disease, getting up to $115 million in the
process.
Shares of Protalix jumped 10% to $10.85 premarket on the news,
and Pfizer was up 0.8% to $18.32.
The move comes as Genzyme Corp. (GENZ) in June had to suspend
production of its Gaucher's treatment after a virus was found. The
FDA in late August gave Protalix fast-track status, speeding up
review of its product, which in October was reported to have met
its primary goal in a late-stage trial.
Gaucher's disease affects about one in 20,000 live births and
causes a fatty substance to develop in cells primarily in the
liver, spleen and bone marrow.
Pfizer will pay Protalix $60 million up front and may make
milestone payments of up to $55 million during development of the
drug. The two companies will share future revenue and expenses for
the development and commercialization of the drug, with Pfizer's
share 60%.
"Pfizer and Protalix expect to quickly deliver an alternative
treatment for people suffering from Gaucher's disease," said Pfizer
executive David Simmons. The company will receive exclusive
worldwide licensing rights for the commercialization of the drug,
while Protalix will keep its commercialization rights in
Israel.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com
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