Cell Therapeutics to acquire pacritinib, a potential myelofibrosis drug

US biotech firm Cell Therapeutics (Nasdaq and MTA: CTIC) and Singapore-based S*BIO Pte have entered into an asset purchase agreement under which CTI would acquire world-wide rights to S*BIO's pacritinib, a highly selective JAK2 inhibitor.

Under the terms of the deal, CTI will make an upfront payment of $15 million and issue $15 million shares of unregistered preferred stock convertible into common stock in CTI. The agreement also includes regulatory success- and sales-based milestone payments, as well as single digit royalties on net sales. CTI will be solely responsible for development and commercialization activities of pacritinib worldwide. The agreement will be subject to satisfaction of certain closing conditions

Pacritinib is an oral JAK2 (Janus Associated Kinase 2) selective inhibitor that has demonstrated encouraging clinical benefit in Phase I and II clinical studies in patients with primary myelofibrosis (MF) or MF secondary to other myeloproliferative neoplasms (MPN). Pacritinib has orphan drug designation in the US and Europe for myelofibrosis.