The manufacture of protein-based therapeutics has become a global growth industry, and the number of worldwide licencees of ProMetic’s proprietary enabling technologies is continually growing as well. Accordingly, we have expanded our ability to collectively serve our current and forthcoming licencees. ProMetic’s Development and Technology Transfer Center located in Rockville, Maryland, opened in 2007. It provides high-value implementation and training programs related to our technologies, while acting as a profit center for ProMetic. In addition to assisting our licencees with the integration of our technologies, these new facilities have enhanced our own development potential with regard to novel plasma protein therapeutics. Meanwhile, our R&D and manufacturing facilities located in the United Kingdom have in recent years undergone extensive upgrade and expansion allowing ProMetic to easily meet market demand for its current and future range of affinity products.
ProMetic and Abraxis BioScience, Inc., have recently announced that they have signed definitive agreements for the development and commercialization, on a world-wide basis (excluding China and Taiwan), of four biopharmaceutical products targeting underserved medical conditions. These represent market opportunities potentially exceeding $600MUS in annual revenue for Abraxis. The transaction includes an initial strategic investment, by Abraxis, in ProMetic of $7MUS.
The transaction involves access to ProMetic’s proprietary protein technologies to commercialize the biopharmaceuticals. Abraxis will fund all development costs to regulatory approval. The licensed products will be manufactured by ProMetic and commercialized by Abraxis.
The licensing agreements include up to $8MUS to ProMetic in potential development milestone payments; potential sales milestones in excess of $287MUS in addition to royalties on the net sales of the four products by Abraxis. Under a separate service agreement, ProMetic will perform product development activities on behalf of Abraxis, which translates into revenue for ProMetic starting in 2008. The combination of development milestones and service fees could represent revenue totaling $34MUS over the next three years for ProMetic. The first product is expected to reach commercial stage by 2011.
Additional revenue to ProMetic will result from the manufacturing of products for clinical trial requirements. Beyond that, the revenue opportunity to ProMetic is expected to significantly increase once the products have reached commercial status. Pursuant to the manufacturing agreement, ProMetic will supply Abraxis with bulk active ingredients. Abraxis will then perform the final formulation steps to dosage form for the four biopharmaceutical products.