Coulter And SmithKline Beecham To Commercialize Cancer Therapy

Coulter Pharmaceutical and SmithKline Beecham have signed an agreement to jointly commercialize Coulter's lead cancer therapy, I-131 Anti-B1 Antibody (iodine I 131 tositumomab), which is in late-stage development for the treatment of non-Hodgkin's lymphoma (NHL).

The Antibody is conjugated to iodine 131 and attaches to the CD20 antigen. CD20 is found only on the surface of B-cells, including both non-Hodgkin's lymphoma B-cells and some normal B-cells. Coulter and SmithKline Beecham believe that through this targeted approach, the tumor cells receive a greater concentration of the therapeutic radiation from I-131 Anti-B1 Antibody relative to normal tissues.

Under the terms of the agreement, SmithKline will pay Coulter an upfront payment of $41.5 million, including the purchase of $7.25 million in equity. In addition, a $15 million credit line will be provided. Additional payments will be made to Coulter on the successful completion of milestones in specific geographical areas around the world. Both companies will share development expenses for the I-131 Anti-B1 Antibody, with Coulter retaining responsibility for funding certain predetermined development costs.

The companies will jointly market the Antibody in the U.S. following regulatory approval, and the two companies will share profits equally. Outside the U.S., excluding Japan, Coulter has granted SmithKline exclusive marketing and distribution rights in return for product royalties. SmithKline will also have access to second generation anti-CD20 compounds.

For more information: Sylvia Wheeler, Coulter Pharmaceuticals, Inc., Telephone: 650-842-7306 or Sharyn Arnold, SmithKline Beecham, P.O. Box 7929, FP2005, Philadelphia, PA 19101, USA. Telephone: 215-751-7074.