CYTOGEN Corporation Announces Five-Year Supply Agreement with The DuPont Pharmaceuticals Company

Strategic Insights -

CYTOGEN Corporation, along with marketing partner Berlex Laboratories, Inc., has finalized a five-year supply agreement with The DuPont Pharmaceuticals Company for the production and distribution of Quadramet(R), a radioisotope-based treatment for pain associated with cancer that has spread to the bone. This agreement marks a significant milestone for CYTOGEN, enabling the company to focus on marketing and implementing additional clinical programs to expand product indications. The deal also includes provisions for royalties and milestone payments for CYTOGEN based on the sales performance of Quadramet(R).

Key Takeaways:

  • CYTOGEN Corporation and Berlex Laboratories, Inc. have finalized a five-year supply agreement with The DuPont Pharmaceuticals Company for Quadramet(R) production and distribution.
  • Berlex will make an up-front payment of $8 million to CYTOGEN, with $4 million allocated to secure the manufacturing commitment from DuPont.
  • The agreement concludes negotiations among the three companies regarding Quadramet(R) manufacturing and allows Berlex to relaunch the product in early 1999.
  • CYTOGEN will receive royalties from Berlex on net sales of Quadramet(R) and milestone payments based on achievement of specific sales levels.
  • Quadramet(R) is approved in the U.S. and Canada for the treatment of pain due to cancer that has spread to the bone, with over 200,000 cancer patients annually experiencing severe pain associated with bone metastases.

Statistics:

  • $8 million: the up-front payment made by Berlex to CYTOGEN.
  • $4 million: the amount allocated to secure the manufacturing commitment from DuPont.
  • 200,000: the number of cancer patients annually experiencing severe pain associated with bone metastases.
  • 75%: the estimated proportion of patients with prostate, breast, or lung cancer experiencing metastases to the bone.
  • 50%: the proportion of patients in whom metastases progress to the extent that palliative treatment is required for the pain.

Sources:

  • CYTOGEN Corporation press release, November 17, 1998 (PRNewswire).
  • "CYTOGEN Corporation and Berlex Laboratories, Inc. Announce Exclusive License Agreement for Marketing and Sale of Quadramet(R) in North and Latin America" (press release, CYTOGEN Corporation).
  • "Quadramet(R) Product Information" (CYTOGEN Corporation website, www.Cytogen.com).