Spectrum Pharmaceuticals Announces Receipt of $41.5 Million from Allergan Per Collaboration Agreement for Apaziquone Announced on October 29th
-- Spectrum Will Receive Up To An Additional $304 Million Based On Achievement Of Certain Clinical, Regulatory And Commercialization Milestones
-- Spectrum Will Continue to Conduct Clinical Trials
-- Allergan to Fund 65% of Costs Starting January 1, 2009
IRVINE, Calif.--(BUSINESS WIRE)--Spectrum Pharmaceuticals, Inc., (NasdaqGM: SPPI - News) announced today that it has received $41.5 million from Allergan, Inc., (NYSE: AGN - News) in connection with the collaboration agreement for apaziquone (EOquin®) signed on October 28, 2008, and announced on October 29, 2008.
Under the terms of the agreement, Allergan paid Spectrum $41.5 million within 10 days of closing and will make additional payments of up to $304 million based on the achievement of certain clinical, regulatory and commercialization milestones. Spectrum retained exclusive rights to apaziquone in Asia, including Japan, China, and India. Allergan received exclusive rights to apaziquone for the treatment of bladder cancer in the rest of the world, including the United States, Canada and Europe. In the United States, Allergan and Spectrum will co-promote apaziquone and share in its profits and expenses. Allergan will also pay Spectrum royalties on all of its apaziquone sales outside of the United States. Spectrum will continue to conduct the apaziquone clinical trials pursuant to a joint development plan, with Allergan bearing sixty-five percent of these expenses.
About Spectrum Pharmaceuticals
We are a biopharmaceutical company that acquires, develops and commercializes a diversified portfolio of drug products, with a focus mainly on oncology and urology. Our strategy is comprised of acquiring and developing a broad and diverse pipeline of late-stage clinical and commercial products; establishing a commercial organization for our approved drugs; continuing to build a team with people who have demonstrated skills, passion, commitment and have a track record of success in developing drugs and commercialization in our areas of focus; and, leveraging the expertise of partners around the world to assist us in the execution of our strategy. For more information, please visit our website at www.spectrumpharm.com.
Forward-looking statement - This press release may contain forward-looking statements regarding future events and the future performance of Spectrum Pharmaceuticals that involve risks and uncertainties that could cause actual results to differ materially. These statements include but are not limited to statements that relate to our business and its future, Spectrum's ability to identify, acquire, develop and commercialize a broad and diverse pipeline of late-stage clinical and commercial products, establishing a commercial organization for our approved drugs, continuing to build our team, leveraging the expertise of partners around the world to assist us in the execution of our strategy, and any statements that relate to the intent, belief, plans or expectations of Spectrum or its management, or that are not a statement of historical fact. Risks that could cause actual results to differ include the possibility that our existing and new drug candidates, may not prove safe or effective, the possibility that our existing and new drug candidates may not receive approval from the FDA, and other regulatory agencies in a timely manner or at all, the possibility that our existing and new drug candidates, if approved, may not be more effective, safer or more cost efficient than competing drugs, the possibility that our efforts to acquire or in-license and develop additional drug candidates may fail, our lack of revenues, our limited marketing experience, our dependence on third parties for clinical trials, manufacturing, distribution and quality control and other risks that are described in further detail in the Company's reports filed with the Securities and Exchange Commission. We do not plan to update any such forward-looking statements and expressly disclaim any duty to update the information contained in this press release except as required by law.