Cytogen licenses US rights to Caphosol

USA-based Cytogen Corp has licensed the exclusive North American rights to Caphosol from InPharma AS, a privately-held Norwegian firm. The topical oral agent, which contains high concentrations of calcium and phosphate ions thought to exert beneficial effects by diffusing to mucosal lesions, is a prescription medical device indicated as an adjunct to standard care for oral mucositis caused by radiation or high-dose chemotherapy, a condition estimated to affect more than 400,000 cancer patients each year.

Caphosol is also indicated for dryness of the mouth (hyposalivation) or of the throat (xerostomia) regardless of the cause or whether the conditions are temporary or permanent. With this acquisition, Cytogen now owns four marketed oncology products.

Under the terms of the deal, InPharma will receive upfront fees of $5.0 million upon the closing of the transaction and an additional $1.0 million payment after six months. In addition, it is entitled receive royalties and sales-based milestone payments. The transaction also provides Cytogen with the option to acquire the rights to Caphosol for the European and Asian markets. Princeton, New Jersey-headquartered Cytogen says it expects to introduce the agent in the US market in early 2007.