Biotech Stock News: Jazz Pharma Shares Go Up Due to Defibrotide Buy

Jazz Pharmaceuticals (JAZZ) shares climbed 6.97% after the company announced that it has entered into an agreement to acquire the rights to defibrotide from Sigma-Tau Pharmaceuticals, Inc. The deal is expected to close in the third quarter of 2014.

Sigma-Tau held the rights to defibrotide on the basis of an agreement with Gentium, which was acquired by Jazz Pharma earlier this year.

Jazz Pharma markets defibrotide in Europe under the brand name Defitelio for the treatment of severe hepatic veno-occlusive disease (VOD) in patients over one month of age undergoing hematopoietic stem cell transplantation therapy. The company is working with the FDA on a regulatory pathway for defibrotide as a treatment for severe VOD with a potential new drug application (NDA) submission planned for the first half of 2015.

Biotech Stock News

As per the terms of the agreement, Jazz Pharma will acquire rights to defibrotide in all countries in the Americas including the U.S. from Sigma-Tau. In return, Jazz Pharma will make an upfront payment of $75 million. Apart from that, Sigma-Tau will receive milestone payments of up to $25 million from Jazz Pharma once the FDA accepts defibrotide’s NDA for the VOD indication and up to $150 million based on the timing of FDA approval.

With this agreement, Jazz Pharma will secure remaining worldwide rights to defibrotide. The company launched Defitelio in some EU countries (including Germany, Austria and the UK) with launches expected to continue over the rest of this year and the next. We are positive on the Sigma-Tau deal. Defibrotide is expected to be synergistic with its Jazz Pharma’s cancer drug, Erwinaze’s sales force.

Biotech News Video

Watch this video for more “Biotech” news.

Biotech Financial News

Defibrotide enjoys fast track designation for the VOD indication in the U.S. and orphan drug status in both the U.S. and the EU for the treatment and prevention of VOD. Jazz Pharma should be in for a good couple of months. The stock looks strong and there is a general Buying consensus.

Thanks for visiting the website. Be sure to catch all BioTech financial news, bookmark us and check all the videos and news articles regarding Biotech business news.

Signup for free to be the first to receive exclusive free links. Now in your mailbox!
Join over 15,000 subscribers
Send me links

Your information will not be shared to anyone