Spectrum Pharmaceuticals Snags Altair’s RenaZorb

07 February 2005 00:01  [Source: ICB Americas]

Making good on its promise to diversify its portfolio of novel therapeutics, Irvine, Calif.-based Spectrum Pharmaceuticals has captured the global rights to Altair Nanotechnologies Inc.’s second-generation lanthanum-based phosphate binder RenaZorb.

Spectrum will take a $200,000 equity stake in Altair and make an upfront payment of 100,000 shares of restricted Spectrum common stock. Altair stands to gain more restricted shares of Spectrum stock upon the completion of animal studies, bringing the anticipated first-year value of the deal to $1.3 million, according to Rodman & Renshaw analyst Ren Benjamin.

Spectrum plans to file an investigational new drug application for RenaZorb with the Food and Drug Administration in the next 12 to 18 months, says Spectrum president and CEO Rajesh Shrotriya. In preparation, analysts expect the company to initiate animal studies during the first half of this year, to be completed by the end of 2005.

Meanwhile, Spectrum will pursue partners for the drug in Japan and Europe, with a priority on out-licensing the Japanese rights, adds Dr. Shrotriya.

RenaZorb targets patients with end-stage renal disease (ESRD), a patient population expected to double in the US over the next decade. The ESRD market, expected to be worth $500 million in 2005, according to Rodman & Renshaw, is currently dominated by Genzyme’s Renagel. However, Renagel patient compliance is low because of the difficulty of swallowing several big pills before each meal, an unattractive side-effects profile and the high cost (roughly $4,000 per year).

Last October, Shire Pharmaceuticals gained approval for Fosrenol, also a lanthanum-based phosphate binder, which provided the rationale for Spectrum’s deal with Altair.

“If Fosrenol was not approved in October, I would not have [in-licensed] this drug,” says Dr. Shrotriya. “RenaZorb, in my judgment, based on the data, could be better than Fosrenol.”

RenaZorb is based on Altair’s nanomaterial technology, making the drug more bioavailable. As a result, patients will likely take just one or two tiny pills and could experience milder side effects because of the higher acid neutralization capacity of the drug.

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