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Pharmaceutical industry

Tanox Receives $12.8 Million Net Milestone Payment from Genentech

Strategic Insights

— 1 min read

Tanox, Inc., a biotechnology company specializing in the discovery and development of monoclonal antibodies, has received a significant $12.8 million net milestone payment from Genentech, Inc., based on the achievement of $300 million in 2005 U.S. sales of Xolair (omalizumab). This payment was made under the terms of a cross-licensing agreement between Tanox and Genentech, related to certain anti-IgE antibodies. The approval of Xolair by the FDA in June 2003 and the European Commission in October 2005, has led to the drug's successful launch in the United Kingdom and Germany, with Genentech and Novartis marketing the drug in the U.S. and Novartis holding marketing rights in the rest of the world.

Key Takeaways:

  • Tanox received a $12.8 million net milestone payment from Genentech, Inc., following the achievement of $300 million in 2005 U.S. sales of Xolair.
  • The payment was made under a cross-licensing agreement between Tanox and Genentech, related to certain anti-IgE antibodies.
  • Xolair, developed by Tanox, Genentech, and Novartis Pharma AG, was approved by the FDA in June 2003 and by the European Commission in October 2005.
  • Genentech and Novartis market Xolair in the U.S., while Novartis holds marketing rights in the rest of the world.
  • Tanox is a biotechnology company specializing in the discovery and development of monoclonal antibodies, with a focus on biotherapeutics for the treatment of immune-mediated diseases, inflammation, infectious disease, and cancer.
  • Tanox recorded the one-time milestone payment as fourth quarter 2005 revenue.

Statistics:

  • $12.8 million: amount of net milestone payment received by Tanox from Genentech.
  • $300 million: amount of 2005 U.S. sales of Xolair, triggering the milestone payment.
  • 2005: year in which Xolair achieved sales of over $300 million in the U.S.
  • 2003: year in which the FDA approved Xolair.
  • 2005: year in which the European Commission approved Xolair.
  • $7.2 million: amount of gross milestone payable to Tanox's former attorneys under an adverse arbitration ruling.

Sources:

  • Health & Medicine Week editors, via NewsRx.com.
  • "Copyright 2006, Health & Medicine Week via NewsRx.com"

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