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Celgene and Pharmion Extend Thalidomide Collaboration
Posted on 2004-12-09 15:41:00
Celgene Corporation and Pharmion Corporation have expanded their thalidomide development and commercialization collaboration. Following Celgene's October acquisition of Penn T, a worldwide supplier of thalidomide for both Celgene and Pharmion, Celgene and Pharmion have agreed to revise their Product Supply Agreement. The modified agreement will entail a one-time payment of $77 million to Celgene in return for a substantial reduction in Pharmion's purchase price of thalidomide, thereby providing Pharmion greater participation in thalidomide's global revenue in its licensed territories. As a result of this revision, the total product supply price paid by Pharmion to Celgene, combined with Pharmion's royalty obligation to Celgene, is reduced from 36% to 23.5% of thalidomide net sales. We are very pleased to have expanded our successful relationship with Celgene to focus on further joint development of thalidomide and to expand the territories where we have thalidomide product rights,” said Patrick J. Mahaffy, president and chief executive officer of Pharmion. “These changes in our overall relationship allow us to commit to a long-term strategy with Celgene and explore the full potential of thalidomide.” The two companies also agreed to extend, from 2005 to 2007, their existing thalidomide research and development agreement directed toward achieving worldwide regulatory approval and expanding the clinical development of thalidomide. Pharmion will pay Celgene an additional $8 million over the next three years to support these ongoing thalidomide development activities.
“These transactions both strengthen our relationship with Pharmion and our commitment to patients, ensuring the safest and widest distribution of thalidomide,” said John W. Jackson, chairman and chief executive officer of Celgene. “We look forward to working together with Pharmion to obtain regulatory approval for thalidomide worldwide.”
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