By Christopher P. Singer —

In a December 17, 2007 press release, Otsuka Pharmaceutical Co., Ltd. and PDL BioPharma, Inc. announced a finalized agreement in which Otsuka acquires intellectual property related assets to IV Busulfex® (busulfan) from PDL.  Under the agreement, Otsuka obtains rights to trademarks, patents, and other Busulfex-related assets, in return for a $200 million cash payment.  IV Busulfex was approved by the FDA in 1999 and is an oncologic drug used in conditioning regimen prior to allogeneic hematopoietic progenitor cell transplantation (blood/bone marrow transplantation).  The drug is marketed in over forty countries with sales of just under $30 million from September 2006 to September 2007 (an increase of nearly 30% from the prior year).  According to the press release, IV Busulfex fits in well with Otsuka’s current efforts to develop
oncology drugs in the United States, including drugs for treatment of severe pain related to cancer (phase II), oral mucositis, and leukemia (each in phase I).  This transaction is expected to close in the first quarter of 2008.