16th Apr 2020 12:00
(Alliance News) - Clinigen Group PLC on Thursday said trading for financial 2020 has been in line with expectations adding that it has signed a licensing agreement with Porton Biopharma Ltd for Erwinase.
The pharmaceutical company said that trading for its financial year to the end of June remains in line with expectations, stating that it has only experienced "marginal disruption" from the Covid-19 outbreak. It added that for the period to the end of March, organic gross profit was up by over 10%. For financial 2019, gross profit was GBP182.3 million.
Clinigen also said it has signed an exclusive licensing and distribution agreement with Porton Biopharma to commercialise Erwinase.
Erwinase or Erwinaze is a treatment for patients with acute lymphoblastic leukaemia who have developed hypersensitivity to E. coli-derived asparaginase, Clinigen said. It has been approved in 19 countries including the US, Europe and Japan.
Under the agreement, Porton Biopharma will maintain the trademarks and manufacture the product, while Clinigen will be responsible for product marketing, packaging, labelling, storage and distribution.
The new contract will begin on January 1, 2021.
Porton Biopharma said the current distributor of Erwinase - Jazz Pharmaceuticals PLC - will continue to distribute the product to ensure continuity of supply for patients during the transition period.
Clinigen will pay GBP5 million upfront in cash as well as future sales-based milestone payments of up to GBP20 million, and royalty payments dependent on worldwide net sales of Erwinase. In 2019, Erwinase had net sales of USD177.7 million
Cinigen said it expects to invest between GBP10 million to GBP20 million in financial 2021 and financial 2022 to support the product. It added that the investment can be funded through its current debt facilities.
The company currently has a GBP430 million debt facility.
"This licensing agreement fits with our strategy to partner with pharmaceutical companies to expand and extend the lifecycle of their products by utilising our global platform and expertise in the supply and distribution of both unlicensed and licensed medicines. As part of our portfolio in oncology and haematology, Erwinase strengthens our commercial offering in key markets and will be a priority product for the group," said Clinigen Chief Executive Shaun Chilton.
Clinigen shares were trading 16% higher at 605.50 pence each on Thursday midday in London.
By Ife Taiwo; [email protected]
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