Tuesday, May 27, 2008

3SBio pays AMAG Pharma $1M to sell ferumoxytol in China

A partnership between AMAG Pharmaceuticals Inc. of Cambridge and 3SBio Inc. will allow the Chinese biotechnology company to develop and commercialize ferumoxytol, an intravenous iron replacement therapeutic used to treat iron deficiency anemia, in China.

Under terms of the agreement, 3SBio (Nasdaq: SSRX) will pay AMAG Pharma (Nasdaq: AMAG) $1 million up front with potential for further payments if the therapeutic agent meets regulations for use with chronic kidney disease. AMAG Pharma may also receive royalties of up to 25 percent from sales of ferumoxytol.

AMAG president and CEO Brian J.G. Pereira cites China’s market, with 12 million patients with Stage 3 and 4 chronic kidney disease and 91,000 people on dialysis, as a way to move ferumoxytol use beyond the U.S.

AMAG Pharmaceuticals develops iron therapy treatments for cancer and cardiovascular disease. The company reported a 2007 net loss of $33 million on revenue of $2.25 million, and employs 88 workers.