Cell Therapeutics to buy cancer drug

Biotech firm Cell Therapeutics Inc. on Thursday will announce plans to pay Biogen Idec Inc. up to $30 million for a lymphoma cancer treatment. Seattle-based Cell Therapeutics will take over sales, marketing and development of Zevalin in the U.S., while Bayer Schering will continue to sell the drug outside the country. Zevalin posted sales of $15.4 million in the U.S. last year as a treatment for patients with relapsed non-Hodgkin's lymphoma.

Cell Therapeutics management hopes to expand the drug's use to serve an initial treatment for non-Hodgkin's lymphoma.

"We see potential for substantial revenue growth for this product," Cell Therapeutics Chief Executive James Bianco said in a statement.

Upon terms of the agreement, Cell Therapeutics will pay Biogen $10 million in cash and up to $20 million in milestone payments when the product receives approval for an additional use. The company plans to hold a news conference Thursday morning to provide details.

Shares of Cell Therapeutics fell 12 cents, or 3.3 percent, to $3.47 on Wednesday.

source : news.yahoo.com