05 December 2005 00:01 [Source: ICB Americas]
American pharmaceutical Partners Inc. (APP) has signed a definitive agreement with American BioScience Inc. (ABI) to merge in an all-stock transaction to form a stronger, fully integrated, global biopharmaceutical company with a market value of roughly $7.5 billion. ABI is currently the parent company and owns approximately 64.4 percent of APP shares. The combined entity would operate under the name Abraxis BioScience.
The merger, expected to close in the first half of 2006, provides a unique opportunity to combine the strengths of a development-stage biotechnology company and a growing, profitable injectable pharmaceutical business, says Patrick Soon-Shiong, executive chairman of APP and chairman and CEO of ABI.
“The newly merged entity will be well positioned to discover and synthesize pharmaceutical product candidates and rapidly advance them through the regulatory process to commercialization,” Soon-Shiong states.
ABI will immediately contribute 50 percent of its North American sales of Abraxane (paclitaxel protein-bound) as well as marketing rights for the rest of the world. Abraxane is an injectable suspension treatment for breast cancer that was approved by the Food and Drug Administration and launched in February 2005.
ABI has also filed for regulatory approval of Abraxane in Canada and expects to file for approval in Europe and Mexico in the first half of 2006. Other anticipated regulatory filings include China, Russia, Korea, Australia, New Zealand, Hong Kong and Taiwan in 2006 and early 2007. ABI recently licensed the marketing rights for Abraxane in Japan to Taiho Pharmaceutical Co.
ABI provides a robust pipeline of proprietary oncology and critical care products developed from the company’s nanoparticle albumin-bound (nab) technology platform.
The new company will be expected to use ABI’s nab technology in other applications for more efficient and faster new drug development. ABI anticipates filing at least 6 investigational new drug applications during 2006 and 2007.
APP brings an injectables franchise focused on several areas, including oncology, critical care and anti-infectives. APP also provides a strong product pipeline with over 20 pending abbreviated new drug applications.
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