GTx, Inc. (Nasdaq: GTXI) announced today that it has sold to ProStrakan Group plc (ProStrakan) its rights and related assets in the metastatic breast cancer product, Fareston ®, for total cash consideration of $21.7 million. After deducting cash expenses relating to the transaction, GTx will receive net cash proceeds from the sale of approximately $19 million. Fareston (toremifene citrate) 60 mg tablets is a selective estrogen receptor modulator approved in the United States for the treatment of metastatic breast cancer in postmenopausal women.
ProStrakan, which is a subsidiary of the pharmaceutical company, Kyowa Hakko Kirin Co. Ltd., executed an Asset Purchase Agreement with GTx to acquire GTx’s exclusive rights in the U.S. to Fareston, along with product inventory. In connection with the transaction, GTx and Orion Corporation (Orion) agreed to terminate their long-standing license and supply agreement for Fareston and other toremifene-based products, and Orion and ProStrakan entered into a new exclusive license and supply agreement for Orion to manufacture and supply Fareston to ProStrakan in the U.S. Torreya Partners LLC served as financial advisor to GTx for the transaction.
Mitchell S. Steiner, M.D., CEO of GTx, observed that “with the sale of Fareston, GTx can now focus its research and development capabilities to discover, develop and commercialize small molecules, like enobosarm, for the prevention and treatment of muscle wasting in patients who have non-small cell lung cancer and Capesaris ® for men with advanced prostate cancer. We are pleased that ProStrakan will continue to make Fareston available to the many women in the U.S. who rely on it as an effective treatment for their advanced breast cancer.”
About GTxGTx, Inc., headquartered in Memphis, Tenn., is a biopharmaceutical company dedicated to the discovery, development, and commercialization of small molecules for the treatment of cancer, cancer supportive care, and other serious medical conditions.