Clinigen 
Group (LSE: CLIN) — a specialty pharmaceuticals and services business, based in Burton-on-Trent — announced this morning that it has acquired global rights to Ethyol, an oncology support therapy, from AstraZeneca. At the time of writing Clinigen’s share price is up just over 6% on the day.
Ethyol is designed to reduce the occurrence of dry mouth (xerostomia) in patients undergoing post-operative radiation treatment. It is also employed to reduce the cumulative renal toxicity that’s associated with the use of cisplatin — a chemotherapy drug — in patients with advanced ovarian cancer.
Revenue from Ethyol in 2013 was approximately $4.9m, but Clinigen has not disclosed how much it is paying AstraZeneca for the rights.
Ethyol is the second product that Clinigen has bought from AstraZeneca, having acquired Foscavir, an anti-viral agent, in 2010. Clinigen now has three oncology support products, and a total of five products in its overall specialty pharmaceuticals portfolio.
Commenting on the announcement, Clinigen CEO Peter George said:
“This acquisition is in line with our stated strategy of acquiring niche, hospital-only therapies which have the potential to save and improve the lives of critically ill patients. Ethyol was originally identified through our acquisition database of large pharma product candidates as a very good fit for Clinigen’s business model; whilst it was one of the original 12 targets and took some time to close, it is further evidence that the Clinigen model works.“
Clinigen’s share price is currently down 29% so far in 2014, during which time the FTSE All-Share has only dipped 0.2%. However, since it listed in September 2012, Clinigen’s share price has gained 136%, leaving the FTSE All-Share trailing, with an increase of just 20%.
