NEW YORK (AP) ¿ Facet Biotech Corp. will pay Trubion Pharmaceuticals Inc. as much as $196.5 million and make a $10 million investment in the company in return for the marketing rights for an experimental leukemia drug, the companies said Friday.
Trubion is running early-stage clinical tests of TRU-016 as a treatment for chronic lymphocytic leukemia. Facet will pay $20 million upfront in the deal and as much as $176.5 million more if the drug advances through clinical development, review by regulators, and reaches sales targets.
Facet will also buy 2.2 million newly issued Trubion shares for $10 million.
The companies will share the costs of developing, selling and marketing the drug. The deal includes the worldwide rights to TRU-016 in diseases other than leukemia, as well as the rights to similar drugs in Trubion's pipeline. Trubion said TRU-016 could treat other cancers that affect the immune system's B-cells, along with autoimmune and inflammatory diseases.Trubion is a development-stage company and does not have any products on the market. In morning trading, shares of the Seattle-based company skyrocketed $2.26, or 59 percent, to $6.09, and reached an annual high of $6.75. Shares of Redwood City, Calif.-based Facet declined 72 cents, or 6.4 percent, to $10.57.