This excerpt taken from the ABII 8-K filed Nov 8, 2007.
(4) Acquisition and Other Transactions
Acquisition of Puerto Rico Manufacturing Facility
In February 2007, Abraxis BioScience, Inc. completed the acquisition of the Pfizer Inc. Cruce Davila manufacturing facility in Barceloneta, Puerto Rico for $32.5 million in cash. This 56-acre site consists of a 172,000 square foot validated manufacturing plant with capabilities of producing EU- and US-compliant injectable pharmaceuticals, as well as protein-based biologics and metered-dosed inhalers. In addition, the acquisition included a state-of-the-art, computer-controlled 90,000 square foot active pharmaceutical ingredients manufacturing plant, and two support facilities with quality assurance and laboratories, totaling 262,000 square feet. New Abraxis was allocated approximately 90,000 square feet of the facility, accounting for approximately $7.6 million of the purchase price. Under the terms of the agreement, New Abraxis has leased its portion of the facility back to Pfizer through February 2012.
Cenomed Joint Venture
In April 2007, New Abraxis formed a joint venture with Cenomed, Inc. to create Cenomed BioSciences, LLC. This venture is designed to further the research and development of novel drugs that interact with the central nervous system focused on psychiatric and neurological diseases, including the treatment of schizophrenia, neuroprotection, mild cognitive impairment and memory/attention impairment associated with aging, attention deficit hyperactivity disorder and pain. New Abraxis holds a 70% membership interest in the joint venture. New Abraxis made an initial contribution of $500,000 to the joint venture and will help to fund further development of these drugs. Cenomed BioSciences, LLC is consolidated in New Abraxis combined financial statements.
Exclusive License of Intellectual Property Portfolio
In May 2007, New Abraxis entered into an agreement with the University of Southern California (USC) under which it was licensed with the exclusive worldwide development and commercialization rights for an intellectual property portfolio of diagnostic protein biomarkers for therapy response, therapy toxicity and disease recurrence in colorectal cancers (CRCs). The intellectual property licensed is based on USC research by Associate Professor of Medicine Heinz-Joseph Lenz and colleagues.
In June 2007, New Abraxis entered into an agreement with Biocon Limited under which New Abraxis licensed the right to develop and commercialize a biosimilar version of G-CSF (granulocyte-colony stimulating factor) in North America and the European Union. New Abraxis will pay a $7.5 million licensing fee upon achievement of the only milestone under the agreement and, following regulatory approval in the licensed territories, will pay royalties to Biocon based on a percentage of net sales.
In June 2007, New Abraxis entered into a license agreement with Biocon Limited under which we granted Biocon the right to market and sell Abraxane® in India, Pakistan, Bangladesh, Sri Lanka, United Arab Emirates, Saudi Arabia, Kuwait and certain other South Asian and Persian Gulf countries. New Abraxis will receive payments from Biocon based on the higher of a percentage of net sales or a specified profit split under the license agreement. In October 2007, New Abraxis received regulatory approval from Indias Drug Controller General to market Abraxane® for the treatment of metastatic breast cancer in India. Commercial introduction of Abraxane® in the Indian market is expected in 2008 following completion of appropriate importation certifications.