Sanofi-Aventis anticancer drug purchase ‘reinforces portfolio’

Sanofi-Aventis has revealed it has bought the marketing and development rights for an anticancer drug known as S-1, manufactured by Japanese pharmaceutical company Taiho.

S-1 has been marketed in Japan since 1999 and is currently in phase III trials in Europe and the United states. The drug has been used as a treatment for a variety of cancers, including gastric cancer, colorectal cancer, head and neck cancer, non-small cell cancer and inoperable or recurrent breast cancer.

In exchange for an upfront payment and milestones conceivably reaching $360 million (195 million pounds), Sanofi-Aventis will fund S-1’s development and marketing in countries outside Japan, while Taiho will assume manufacturing responsibilities.

Ben Yeoh, an analyst at Dresdner Kleinwort, told Reuters that the $360 million price tag was consistent with prices paid by other manufacturers and added: “It is relatively low risk for Sanofi because the drug is already in phase III trials and is being marketed in Japan.”

Sales of S-1 in Japan reached 31 billion yen (146 million pounds) in 2005, based on National Health Insurance statistics.

Yesterday, the FDA warned Sanofi Pasteur, Sanofi-Aventis’ vaccines arm, over the sterility of its Fluzone vaccines. It said that eleven batches of Fluzone between February and April this year failed sterility tests.

Sanofi Pasteur has been given 15 days to reply to the regulator’s letter.

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