Barclays Capital analyst Dr. Anthony Butler says that this week's deal by Pfizer to acquire worldwide marketing rights (except in Israel) to Protalix's Gaucher's disease drug (taliglucerase alfa) gives Pfizer access "to a promising drug in a small but lucrative market." Protalix retained the marketing rights in Israel.
Pfizer paid $60 million up front, and a potential $55 million in milestone payments, in the deal. Pfizer and Protalix will share development costs and future revenue at a 60%/40% split.
Butler says that Pfizer and Protalix project that there are approximately 10,000 Gaucher's disease patients worldwide, and that 5,500 currently receive treatment. Cerezyme is the only drug approved for the treatment of Gaucher's disease, and a drug developed by Shire is awaiting regulatory decision from the US and EU authorities
According to Butler, "The treatments typically command a premium due to the rare nature of the disease and annual treatment (chronic therapy) costs north of $250,000 per patient. "
The Barclays Capital analyst forecasts peak potential annual sales of the drug to be in the range of $200-400 million. The exact figure will depend on factors including the approval and launch of Shire's drug.
Butler believes that the drug will be more readily taken by new patients, since doctors, and patients who are taking Cerezyme, may be hesitant to switch.
Published by Globes [online], Israel business news - www.globes-online.com - on December 3, 2009
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