Spectrum Pharmaceuticals Inc. (Nasdaq: SPPI) is buying medicine maker Talon Therapeutics Inc.
The purchase price includes $11.3 million in cash and 3 million shares of Spectrum common stock. Talon’s shareholders could also receive up to $195 million in future cash payments based on certain milestones.
Talon Therapeutics, headquartered in San Francisco, develops Marqibo, a medication to treat leukemia, as well as Menadione Topical Lotion, which aims to treat skin toxicity.
Spectrum is a biotechnology company that focuses on acquiring, developing and commercializing drug products, specifically for oncology and hematology. The company markets three medications for injection: Fusilev, Folotyn and Zevalin.
The deal gives Henderson, Nev.-based Spectrum another drug that fits into the company’s hematology and oncology franchise. The company is making the purchase through a wholly-owned subsidiary.
H.C. Wainwright & Co. LLC is Spectrum’s financial adviser, while Stradling Yocca Carlson & Rauth PC is acting as the company’s legal counsel.