How Can Celator’s Portfolio Complement Jazz Pharmaceuticals?



Celator Pharmaceuticals’ portfolio

Celator Pharmaceuticals is a clinical-stage biopharmaceutical company that’s listed on Nasdaq as CPXX. It’s focused on developing cancer therapies and possesses Vyxeos (CPX-351) in its portfolio. Other major companies that operate in the oncology space include Roche Holding (RHHBY), Novartis (NVS), Medivation (MDVN), and Sanofi (SNY).

Celator completed a Phase 3 registration study for CPX-351 and is planning to file an NDA (New Drug Application) with the FDA (U.S. Food and Drug Administration) by the end of 3Q16.

Similarly, it’s planning for European Union regulatory submission by the end of the first quarter of 2017. Celator’s pipeline also includes CPX-1 and CPX-8.

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Jazz Pharmaceuticals’ portfolio

Jazz Pharmaceuticals (JAZZ) is a biopharmaceutical company with three commercialized drugs: Xyrem, Erwinaze/Erwinase, and Defitelio. Xyrem, its key drug, contributed ~72.5% to Jazz’s total revenue in fiscal 2015. For details on the drug, please refer to Xyrem: Jazz Pharmaceuticals’ Key Product.

To understand Jazz’s pipeline, you can refer to A Look at Jazz Pharmaceuticals’ Sleep and Hematology Pipeline.

How will the acquisition complement Jazz’s portfolio?

Celator’s lead drug Vyxeos targets acute myeloid leukemia (or AML) patients. The FDA granted breakthrough therapy designation to the drug for treating adults with therapy-related AML or AML with myelodysplasia-related changes. It also holds fast track designation for the indication of secondary AML in older patients and orphan drug designation for the indication of AML.

As a post-remission therapy, poor-risk AML patients or older AML patients undergo allogeneic hematopoietic stem-cell transplantation (or allo HSCT). According to Jazz’s presentation on the acquisition, ~4,000 AML and ALL (acute lymphoblastic leukemia) patients receive allo HSCT.

Jazz’s recently approved Defitelio is indicated for curing hepatic veno-occlusive disease in adults and children undergoing HSCT. Detailed information on Defitelio can be accessed at Could Defitelio Bring Growth for Jazz Pharmaceuticals?

So Vyxeos would offer commercial synergies to Jazz in the form of a complementary targeted prescriber base of AML patients who undergo HSCT. We’ll look more closely at the drug in the next part of the series.

To get exposure to Jazz and control excessive company-specific risks, you can choose to invest in the iShares US Pharmaceuticals (IHE). Jazz accounts for 2.6% of IHE’s total holdings.


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