Chatham, Baxter partner to develop and commercialize hemophilia B gene therapy treatment

Baxter International Inc. (NYSE:BAX) today announced that it has entered into an exclusive global agreement with Chatham Therapeutics, LLC, an affiliate of Asklepios BioPharmaceutical, Inc. (AskBio), for the development and commercialization of potential treatments for hemophilia B utilizing Chatham's gene therapy technology.

The collaboration will allow Baxter to investigate Chatham's Biological Nano Particles^TM (BNP), an advanced recombinant adeno-associated virus-(rAAV) based gene therapy technology that has shown potential therapeutic benefit in early clinical studies. A small independent study involving six patients using Chatham technology components was the topic of a 2011 article in The New England Journal of Medicine. This agreement will involve the next generation of this gene therapy technology, which Baxter and Chatham will investigate through U.S.-based hemophilia B clinical trials. Baxter has obtained global rights for the marketing and commercialization of the new treatment.

''This collaboration demonstrates Baxter's ongoing commitment to scientific innovation in advancing treatment options for patients living with hemophilia. This initiative complements Baxter's extensive hemophilia portfolio and helps to address unmet needs of hemophilia patients,'' said Ludwig Hantson, Ph.D., president of Baxter's BioScience business.

Baxter made a $25 million upfront cash payment for the development and advancement of the program through early clinical trials, and will record this amount as a special pre-tax in-process research and development charge in the second quarter of 2012. Baxter may make additional payments over the next several years based on certain development and commercial milestones.

''This agreement initiates a clinical development collaboration dedicated to advancing a potential long-term treatment paradigm for hemophilia patients. We look forward to working with Baxter and view this transaction as the optimal path toward providing a sustainable therapeutic to a worldwide patient population,'' said Jade Samulski, Vice President at AskBio and Co-Founder of Chatham Therapeutics.

Source: Baxter International Inc.