Baxter BioScience Expands Oncology Business

Baxter International Inc. announced it has agreed to acquire the Oncaspar (pegaspargase) product portfolio from Sigma-Tau Finanziaria S.p.A. expanding its presence in oncology markets for rare and orphan diseases. The acquisition provides Baxter with a marketed biologic treatment Oncaspar, the investigational biologic calaspargase pegol, and an established oncology infrastructure with clinical and sales resources. The Oncaspar transaction is expected to close in the third quarter.

By mid-2015, Baxter expects to establish the BioScience business as a separate, publicly traded, innovation-oriented biopharmaceutical company, Baxalta Incorporated.

Oncaspar is a first-line biologic used as part of a multi-agent chemotherapy regimen to treat acute lymphoblastic leukemia (ALL). It is currently marketed in the United States, Germany, Poland and certain other countries and has approximately $100 million in annual sales.

Baxter BioScience reports that the company intends to continue the development of a lyophilized formulation, which is being investigated to enhance product stability to support product supply continuity.

As part of the acquisition, Baxter BioScience is also acquiring a related new chemical entity calaspargase pegol, a biologic in development for the treatment of ALL with an increased shelf life that is expected to reduce dosing frequency. Further, the company plans to investigate Oncaspar for potential new indications, including in additional ALL patient populations with significant unmet needs, as well as for acute myeloid leukemia (AML).

Baxter will purchase the portfolio for $900 million before working capital and other transaction adjustments. The company expects to finance the transaction through a combination of foreign cash and debt. Closing of the transaction is expected in the third quarter of 2015.

Source: Baxter BioScience