Abraxis BioScience, Inc. Acquires Shimoda Biotech and Platco Technologies
LOS ANGELES -- Abraxis BioScience, a fully integrated biotechnology company, today announced the completion of the acquisition of Shimoda Biotech (Pty) Ltd and its subsidiary, Platco Technologies (Pty) Ltd, located in Plettenberg Bay, South Africa.
Shimoda Biotech focuses on the development of new pharmaceutical products by combining successful off-patent molecules with a novel cyclodextrin drug delivery platform, seeking to exploit the faster onset and improved bioavailability characteristics of that platform. Platco Technologies focuses on the development of novel platinum-based anti-cancer drugs.
Under the terms of the agreement, Abraxis acquired 100% of the equity of both Shimoda and Platco for an initial upfront payment at closing of $15 million, plus potential additional payments upon the achievement of specified milestones.
Shimodaâ€™s first cyclodextrin-based product, DylojectÂ® (diclofenac sodium solution for injection), is an injectable painkiller for the treatment of post-surgical pain. DylojectÂ® is the worldâ€™s first solubilized intravenous formulation of diclofenac. Diclofenac is one of the most widely prescribed non-steroidal anti-inflammatory drugs (NSAID).
DylojectÂ® was launched in December 2007 in the United Kingdom by Javelin Pharmaceuticals (AMEX:JAV - News) under an exclusive worldwide license agreement with Shimoda pursuant to which Shimoda will receive milestone payments and royalties based on sales of DylojectÂ®. Javelin currently intends to file additional marketing applications through the mutual recognition process in a number of European Union member countries, including Germany, Europeâ€™s largest market for prescription injectable pain medications. Additionally, final Phase 3 clinical trials were initiated in the U.S. in the second half of 2006 and currently are ongoing. Data from these studies are expected in mid-2008. Currently, there is no IV diclofenac available in the U.S.
Shimodaâ€™s second cyclodextrin-based product candidate is an oral tablet formulation of diclofenac that offers fast relief for a wide range of acute pain indications such as headache, migraine, sore throat and musculoskeletal pain. To date, four clinical studies have been conducted. A number of additional cyclodextrin-based product candidates are in development at the pre-clinical stage.
Shimoda has several additional ongoing early stage projects, including a licensed drug delivery platform based on virus-like particles that may facilitate the targeted delivery of drug compounds, genetic material, including DNA and RNA, and therapeutic proteins.
Platco Technologies, a scientific team of world-class experts on platinum group metals chemistry, has developed several next generation platinum-based anti-cancer compounds, which have shown promising pre-clinical results compared to currently marketed proprietary platinum-based compounds.
â€œWe believe Shimoda and Platco are valuable acquisitions for Abraxis, offering a revenue stream from DylojectÂ®, a product pipeline based on a novel cyclodextrin delivery platform, and access to promising next-generation platinum-based compounds. These compounds can expand Abraxisâ€™ growing oncology franchise and target global markets in excess of $2 billion,â€ said Patrick Soon-Shiong, M.D., Chairman and Chief Executive Officer of Abraxis BioScience.
â€œJoining forces with Abraxis is an excellent opportunity to advance our product development efforts with a global company that has in-depth knowledge in our target markets,â€ said Gregory Gilbert, Chief Executive Officer of Shimoda. â€œWe look forward to working together and leveraging the value we have created through our internal efforts and partnerships.â€
About Abraxis BioScience
Abraxis BioScience is a fully integrated global biotechnology company dedicated to the discovery, development and delivery of next-generation therapeutics and core technologies that offer patients safer and more effective treatments for cancer and other critical illnesses. The companyâ€™s portfolio includes the worldâ€™s first and only protein-bound nanoparticle chemotherapeutic compound (ABRAXANEÂ®), which is based on the companyâ€™s proprietary tumor targeting technology known as the nabâ„¢ platform. The first FDA approved product to use this nab platform, ABRAXANEÂ®, was launched in 2005 for the treatment of metastatic breast cancer. Abraxis trades on the Nasdaq Global Market under the symbol ABII. For more information about the company and its products, please visit www.abraxisbio.com.
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this press release include statements regarding our expectations, beliefs, hopes, goals, intentions, initiatives or strategies, including statements regarding the acquisition of Shimoda and Platco and development and commercialization of the acquired products. These statements involve risks and uncertainties. There are important factors that could cause actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, unexpected safety, efficacy or manufacturing issues, the impact of pharmaceutical industry regulation, the impact of competitive products and pricing, the acceptance and demand of new pharmaceutical products, the impact of patents and other proprietary rights held by competitors and other third parties. Additional relevant information concerning risks can be found in Abraxis BioScience's Annual Report on Form 10-K for the year ended December 31, 2007 and other filings with the Securities and Exchange Commission. The information contained in this press release is as of the date of this release. Abraxis assumes no obligations to update any forward-looking statements contained in this press release as the result of new information or future events or developments.
Contact: Abraxis BioScience Daniel Saks Vice President, Investor Relations and Corporate Communications 310-405-7417 or Pondel Wilkinson Inc. Rob Whetstone 310-279-5963 Source: Abraxis BioScience, Inc.