UPDATE 1-Baxter to sell Kamada’s lung-damage treatment

* To sell drug in US, Canada, Australia and New Zealand

* Kamada to receive milestone, royalty payments

* Kamada’s shares jump 17.8 percent

JERUSALEM, Aug 24 (BestGrowthStock) – Baxter International (BAX.N: )
and Israeli biopharmaceutical company Kamada (KMDA.TA: ) have
entered a distribution and manufacturing agreement for Glassia,
a drug that treats genetic lung-damaging disorder alpha-1
antitryspin (AAT).

The deal sent Kamada’s share up 17.8 percent by midday in
Tel Aviv.

In a joint statement, the companies on Tuesday said Baxter
will market Glassia, made by Kamada, in the United States,
Canada, Australia and New Zealand.

Baxter will also gain access to Kamada’s technology of the
liquid AAT drug.

Under terms of the deal, Kamada will receive milestone
payments of $45 million including an upfront payment of $20
million. Kamada will also be eligible to receive up to another
$25 million after meeting certain milestones.

Baxter has committed to buy minimum quantities of Glassia
totalling around $60 million but that could reach $110 million
during the first five years of the agreement. Kamada will also
receive significant royalty payments of at least $5 million a
year on net sales of the product produced by Baxter.

Baxter will serve as the exclusive distributor of Glassia in
the United States and will replace a previous deal with an
undisclosed large U.S. specialty pharmaceutical company.

The deal does not include the inhaled version of the drug,
which is currently undergoing clinical trials in Europe. But the
companies said they will examine cooperation of the inhaled
product.

“The strategic cooperation with Baxter is expected to enable
Kamada to reach significantly larger sales volume in the U.S.
market with greater profitability margins,” Kamada CEO David
Tsur said in the statement.

“The cooperation with Baxter will enable Kamada financial
independence and firmness needed for facilitating the
development of the next generation product, the inhaled AAT”.

Kamada in July won U.S. Food and Drug Administration
approval for a liquid version of Glassia, the first Israeli
company to get U.S. clearance for a drug produced by a biologic
process rather than a chemical one. [ID:nLDE6610GV]

A few days later, scientists recommended expensive
treatments for AAT should be withdrawn because the drugs have no
benefit. Researchers found no evidence that AAT medicines —
also made by Talecris (TLCR.O: ), CSL (CSL.AX: ) and Baxter — do
any good.

Kamada has rejected the study. [ID:nLDE66A04T]
[ID:nLDE6670TE]
(Reporting by Steven Scheer; Editing by Louise Heavens)

UPDATE 1-Baxter to sell Kamada’s lung-damage treatment