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GEN News Highlights : Aug 24, 2010

Baxter Doles Out $20M for Commercial Rights to Kamada’s Emphysema Therapy

Exclusive deal covers Australia, Canada, New Zealand, and the U.S.

Baxter International is paying $20 million upfront to Kamada for exclusive commercial rights to Glassia™, a liquid alpha1-proteinase inhibitor for the treatment of emphysema. The deal includes rights in Australia, Canada, New Zealand, and the U.S.

In addition to the $20 million cash payment, the agreement also includes a provision under which Kamada has agreed, for a limited period of time, not to initiate or enter any discussions or agreements relating to the commercialization of Glassia in certain other geographic areas.

Under a separate license agreement, Baxter has been granted the right to process Glassia and will seek necessary regulatory approvals to enable it to do so. Also under this agreement, Baxter may make additional payments of up to $25 million related to the achievement of certain commercial milestones and the execution of technology transfer related to the production of the therapy. Kamada will also earn royalties on product sales.

Baxter expects to introduce Glassia in the U.S. during the fourth quarter. It will pursue distribution licenses for the drug in the other countries for which it has obtained rights.

Glassia was approved by the FDA on July 1. It is indicated for chronic augmentation and maintenance therapy in individuals with emphysema due to congenital deficiency of alpha1-proteinase inhibitor (alpha1-PI), also known as alpha1-antitrypsin deficiency.

“The agreement with Kamada underscores Baxter’s commitment to expanding the diagnosis of alpha1-antitrypsin deficiency by bringing new and innovative therapeutic options to alpha-1 patients and their treating physicians,” comments Larry Guiheen, president of global biopharmaceuticals, Baxter BioScience.