Despite years of hype, the ultrasound contrast market has been slow to develop. At the same time, vendors continue to jockey for position in the sector. Today therapeutic and diagnostic drug developer Alliance Pharmaceutical announced an agreement to purchase ultrasound contrast agent firm Molecular Biosystems in a stock deal valued at $10.4 million.
If completed, the acquisition would result in a company with an extensive ultrasound contrast product line. MBI's Optison product for the enhancement of echocardiography images is one of the only ultrasound contrast agents on the U.S. market, while Alliance is developing another cardiac ultrasound contrast agent, called Imavist (formerly Imagent), in collaboration with Schering of Berlin.
While both agents are based on similar perfluorochemical technology, development efforts on Imavist will continue, according to Duane Roth, Alliance chairman and CEO.
"While these products are similar in nature and are both aimed at the same market, we feel that there’s potential advantages to both," Roth said. "(MBI’s) product is based on albumin, a more rigid shell agent, and ours is based on a surfactant, a more soft shell, or flexible agent. While it’s too early for us to determine which indications might be better for a hard shell agent vs. a flexible agent, we will have both of these agents (so that) we won’t miss any opportunities that might present themselves."
In August, San Diego-based Alliance announced that the FDA had completed its review of a new drug application (NDA) for Imavist and found it to be approvable upon satisfactory response to issues identified in the review process, according to Alliance. The NDA included data from two phase III studies in which the agent was used to improve endocardial border delineation.
Once the acquisition is completed, San Diego-based MBI will become a wholly owned subsidiary of Alliance. For MBI, the acquisition would finally bring a new owner to the firm. MBI was set to be acquired by fellow contrast agent developer Palatin Technologies in a transaction announced in November 1999, but that deal fell apart earlier this year. The Alliance acquisition is subject to the approval of MBI’s shareholders.
Alliance expects to take advantage of MBI’s global partnerships, particularly in Japan, historically a leader in implementing contrast media technology, Roth said. In Japan, South Korea, and Taiwan, Japanese pharmaceutical giant Chugai Pharmaceuticals is preparing Optison (known there as FS069) for marketing. FS069 is currently in phase III clinical trials in Japan, where it is being evaluated for both myocardial perfusion and liver imaging applications.
MBI’s agreement with Chugai provides MBI with potential milestone payments up to $16 million, and, following regulatory approval, MBI will receive a net royalty of approximately 25% of Optison sales in the Chugai sales territory.
In addition, Nycomed Amersham of Princeton, NJ, is expected to co-market Optison, along with MBI's existing partner Mallinckrodt of St. Louis, as a result of a recent agreement between the two firms. MBI will receive a 5% royalty on net sales of ultrasound contrast agents for all current and future approved indications in the U.S. and Europe, according to MBI. Alliance believes the co-promotion efforts with Nycomed will also increase sales.
Next page: Gaining acceptance for ultrasound contrast
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