MGI082907
On the homepage
Sunday's paper
Out There
Gophers
Light rail
MGI Pharma buys rights to new blood treatment
The company says the experimental drug for treating blood disorders could have a $1 billion U.S. market. MGI Pharma says an experimental drug treating blood disorders could have a $1 billion U.S. market.
Print this story
E-mail this story
Save to del.icio.us
Share on Facebook
Share on Digg
Minnesota business by the numbers
See Minnesota's top earning companies, CEOs and non-profits
More from Business
MGI Pharma Inc. has obtained the rights from a small New Jersey company to commercialize a drug for treating a blood disorder that affects millions of people.
The Bloomington-based biopharmaceutical company, which markets drugs for the cancer and acute-care markets, said late Tuesday that it will commercialize AKR-501, developed by AkaRx Inc. of Paramus, N.J.
MGI Pharma predicts a potential U.S. market of more than $1 billion for the drug, which is still being tested in clinical trials and is several years from possible regulatory approval.
"This is potentially a transformational event for our company," said Lonnie Moulder, MGI's president and CEO. "There are numerous potential platforms for this drug; it could be a blockbuster for us."
AKR-501 was developed to treat thrombocytopenia, an abnormal drop in blood cells (or platelets) involved in forming blood clots. The condition often leads to abnormal bleeding. The drug stimulates platelet production.
Those patients usually are suffering from diseases such as cancer, hepatitis C, or an autoimmune disorder that leads to the destruction of platelets in the spleen.
MGI Pharma said Tuesday that it will make a up-front payments of $45 million for license rights; the company has the option to buy AkaRx by January 2010 for an additional $255 million.
AkaRx conducted early clinical trials to determine whether the drug is effective in patients with autoimmune disorders. MGI Pharma plans to launch a larger study of those patients within the next 18 months that could take up to two years to complete.
MGI also will begin studies "in the next several quarters" in patients with hepatitis C and with cancer patients who are being treated with chemotherapy.
The agreement also covers licensing right of an experimental drug called AKR-201, which targets patients suffering from thyroid cancer.
The announcement was made after the markets closed on Tuesday. MGI Pharma's stock closed at $24.05, down 25 cents. But shares have increased 61 percent over the past year.
The company is best known for a drug called Aloxi, used to prevent nausea after chemotherapy. Aloxi sales have been battered by generic competition this year. But in July the company reported a second-quarter profit that beat Wall Street expectations.
Janet Moore • 612-673-7752
Janet Moore • jmmoore@startribune.com
Recent Business stories
Gubernatorial candidates promise leadership for all-important agriculture in South Carolina - August 28, 2007
Gubernatorial candidates promise leadership for all-important agriculture in South Carolina - Six candidates running for governor agreed Friday that agribusiness is crucial to South Carolina but each told an audience of farm and business leaders he has the best vision for the $34 billion industry. More
- Prosperan purchase is model of successful bank failure
- New website is a one-stop job shop
- Moguls tell how they were fooled
- Faith-based investors lobby against Chamber's stand
- Red Wing Shoe to trim workforce, consolidate operations
- ADC buyout speculation appears to be just that
- Retired widow fears losing her home
Blog: Patent Pending
Meanwhile, in Wisconsin....
As you read this blog entry, angel investors and start-ups are flocking to Madison, Wisconsin for the annual Wisconsin Early Stage Symposium and the Mid West Health Care Venture forum.
Comment on this story | Be the first to comment | Hide reader comments