Spectrum Has Potential to Earn Up to $22
Million in Combination of Base Fee and Identified Milestone
Payments
With Strong Pharmaceutical and Oncology Focused
Expertise, Spectrum’s 32-Person Corporate Accounts Sales Team
Poised to Commercialize up to Six Eagle Products
In Addition, Eagle to Hire up to 20 Direct
Sales Representatives for a Total of 52; Agreement Facilitates
Eagle’s Strategic Transition into Commercial Pharmaceutical
Company
Eagle Pharmaceuticals, Inc. (NASDAQ:EGRX) (“Eagle” or the
“Company”) and Spectrum Pharmaceuticals (NASDAQ:SPPI) (“Spectrum”)
today announced that they have entered into a co-promotion
agreement (“the agreement”) under which the Spectrum 32-person
Corporate Accounts Sales Team will dedicate 80 percent of its time
to selling and marketing up to six Eagle products over a period of
at least 18 months. Spectrum will continue to maintain a separate
sales force to market existing and potential hematology
products.
The agreement leverages the experience and network of the
Spectrum Corporate Accounts Sales Team in order to maximize the
respective product sales of both companies by targeting infusion
centers, hospitals, and oncology purchasing groups.
The Spectrum Corporate Accounts Sales Team is a group of 32
proven and seasoned professionals focused in the hematology and
oncology space, calling on infusion centers and hospitals. Each
team member has extensive pharmaceutical industry experience,
including years of oncology-specific experience. This cohesive team
has demonstrated strong performance and they are poised to
commercialize Eagle’s promising assets.
Under the terms of the agreement, the Spectrum Corporate
Accounts Sales Team will promote up to six products. This will
potentially include Eagle’s current pipeline plus products that may
be in-licensed over time. Eagle’s approximately 20 direct sales
representatives will focus on promoting Eagle products with an
initial emphasis on the launch of RTU Bivalirudin and RYANODEX®
(dantrolene sodium).
As outlined in the agreement, Eagle will pay Spectrum a base fee
of $12.8 million over 18 months. Spectrum will also have the
opportunity to earn an additional $9 million in specific identified
sales milestone payments if its Corporate Accounts Sales Team
surpasses sales projections, for a potential total payment of up to
$22 million in base fee and specified milestones over 18 months.
The agreement grants both companies the opportunity for six-month
renewal periods upon mutual agreement.
“Our agreement with Spectrum is a very positive step at this
exciting and critical time for Eagle as we transition from a
development-stage pharmaceutical company to a commercial
organization with a portfolio of differentiated, in-market products
and a continued promising pipeline,” said Scott Tarriff, President
and Chief Executive Officer of Eagle Pharmaceuticals. “Driven by
our commitment to building sustainable, long-term shareholder
value, this agreement allows Eagle to make this transition with
little commercial risk and minimal financial obligation while
we deliberately build our own commercial sales team."
“By partnering with Spectrum, we are capitalizing on a unique
opportunity to strategically secure a highly-successful sales team
that will spend 80 percent of its time calling exclusively on
Eagle’s customers, infusion centers, hospitals, and oncology
purchasing groups. We are confident that Spectrum’s proven sales
team will help Eagle maximize the success of new product launches
and achieve our increased revenue goals while reducing the expense
burden prior to and during the launch process,” concluded
Tarriff.
“Partnering with Eagle is a value-enhancing opportunity as we
continue our efforts to bring innovative products for patients and
enhance value for Spectrum shareholders,” said Rajesh C. Shrotriya,
MD, Chairman and Chief Executive Officer of Spectrum
Pharmaceuticals. “The timing of the agreement allows us to quickly
leverage our existing infrastructure to launch and market Eagle’s
drugs. Moreover, maintaining a cohesive and engaged sales team has
long-term strategic value for Spectrum. By working with Eagle to
promote its expanding portfolio of marketed products, we are
providing the members of the Spectrum Corporate Accounts Sales Team
an opportunity to strengthen their partnerships with key
stakeholders in the oncology marketplace and participate in the
engaging work of launching important therapeutics. We look forward
to working closely with Eagle to bring improved specialty products
to health care professionals and patients.”
Eagle to Hire Approximately 20 Direct Sales Representatives
as Part of Long-Term Commercialization Strategy; Sales Team to Form
Company’s Internal Commercial Organization
As part of the co-promotion agreement and long-term strategy to
build an internal commercial team, Eagle will also hire
approximately 20 direct sales representatives who will be a part of
Eagle’s independent commercial organization. These representatives
will be managed under the Spectrum sales team infrastructure for
the duration of the co-promotion agreement. This arrangement serves
to ensure a well-trained sales team and facilitates a seamless,
low-cost transition with minimal risk.
Eagle expects its in-market portfolio will significantly expand
in 2016, assuming FDA approvals for Docetaxel Injection, RTU
bivalirudin, and the tentatively approved 500 mL RTD bendamustine.
Anticipated approval dates for these products are in December 2015,
March 2016, and May 2016, respectively. Combined with anticipated
royalties from Teva for rapidly administered bendamustine 50 mL,
revenues from RYANODEX, and royalties from commercial partner net
product sales for argatroban, the Company expects an increasing
revenue stream and expedited ability to deliver long-term,
sustainable growth.
About Eagle Pharmaceuticals, Inc.
Eagle is a specialty pharmaceutical company focused on
developing and commercializing injectable products that address the
shortcomings, as identified by physicians, pharmacists and other
stakeholders, of existing commercially successful injectable
products. Eagle’s strategy is to utilize the FDA's 505(b)(2)
regulatory pathway. Additional information is available on the
company’s website at www.eagleus.com.
About Spectrum Pharmaceuticals, Inc.
Spectrum Pharmaceuticals is a leading biotechnology company
focused on acquiring, developing, and commercializing drug
products, with a primary focus in Hematology and Oncology. Spectrum
currently markets five hematology/oncology drugs, and expects an
FDA decision on another hematology drug later this year.
Additionally, Spectrum's pipeline includes three drugs targeting
blockbuster markets in advanced stages of clinical development.
Spectrum's strong track record for in-licensing and acquiring
differentiated drugs, and expertise in clinical development have
generated a robust, diversified, and growing pipeline of product
candidates in advanced-stage Phase 2 and Phase 3 studies. More
information on Spectrum is available at www.sppirx.com.
Forward-Looking Statements
This press release contains forward-looking information within
the meaning of the Private Securities Litigation Reform Act of
1995, as amended and other securities laws. Forward-looking
statements are statements that are not historical facts. Words such
as “will,” “may,” “intends,” “anticipate(s),” “plan,” “enables,”
“potentially,” “entitles,” and similar expressions are intended to
identify forward-looking statements. These statements include, but
are not limited to, statements regarding future events including,
but not limited to: the timing of product approvals and launches;
success and effectiveness of sales and marketing efforts;
difficulties or delays in manufacturing; the availability and
pricing of third party sourced products and materials; successful
compliance with FDA and other governmental regulations applicable
to manufacturing facilities, products and/or businesses; and other
factors that are discussed in Eagle’s Annual Report on Form 10-K
for the year ended September 30, 2014, and its other filings with
the U.S. Securities and Exchange Commission. All of such statements
are subject to certain risks and uncertainties, many of which are
difficult to predict and generally beyond Eagle’s control, that
could cause actual results to differ materially from those
expressed in, or implied or projected by, the forward-looking
information and statements. Such risks include, but are not limited
to risks described in Eagle’s filings with the U.S. Securities and
Exchange Commission. Readers are cautioned not to place undue
reliance on these forward-looking statements that speak only as of
the date hereof, and we do not undertake any obligation to revise
and disseminate forward-looking statements to reflect events or
circumstances after the date hereof, or to reflect the occurrence
of or non-occurrence of any events.
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version on businesswire.com: http://www.businesswire.com/news/home/20151104006674/en/
Eagle Pharmaceuticals:In-Site Communications, Inc.Lisa M.
Wilson, 212-452-2793PresidentorSpectrum Pharmaceuticals:Shiv
Kapoor, 702-835-6300Vice President, Strategic Planning &
Investor RelationsInvestorRelations@sppirx.com
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