Lasofoxifene [
CP 336156] is a potent, nonsteroidal, tissue-
selective estrogen receptor modulator (
SERM). It has the bone-sparing and cardioprotective effects of
estrogen, but lacks
estrogen's
uterine cancer risk.
Lasofoxifene is under development with
Ligand Pharmaceuticals and Pfizer (formerly Parke-Davis) for the prevention of
postmenopausal osteoporosis and
breast cancer. In June 2000, Parke-Davis' parent company, Warner-Lambert, merged with Pfizer. The resulting company retained the Pfizer name and Parke-Davis was integrated into Pfizer Global Research and Development. The discovery of
lasofoxifene resulted from a research collaboration between Pfizer and
Ligand Pharmaceuticals. There was a contract dispute between the two companies relating to their research agreement. Under a settlement of litigation,
Ligand is entitled to milestone and royalty payments. If Pfizer is successful in developing the
drug through to regulatory approval in the US,
Ligand could receive royalty revenues from
lasofoxifene as early as 2003-2004. The royalties will be equal to 6% of net sales and will be in addition to milestone payments for continuing development of the
drug. However, on 6 March 2002,
Ligand Pharmaceutical announced an agreement with Royalty Pharma in which the latter purchased the rights to a share of these future payments. Under the agreement,
Ligand received US dollars 6 million from Royalty Pharma in exchange for a 0.25% stake in net sales of three
SERM products (
lasofoxifene,
bazedoxifene and
bazedoxifene/
Premarin) for a period of 10 years. Royalty Pharma retains the option to purchase, at escalating prices, additional rights (subject to timing restrictions) to extend this stake up to 1.0%, for a total of US dollars 56 million. In April 2002, Royalty Pharma exercised its first option to purchase an additional 0.125% of potential future sales of the three
SERMS in exchange for US dollars 3 million. Subsequently, in December 2002, Royalty Pharma exercised an expanded option and agreed to pay
Ligand US dollars 6.775 million for 0.1875% of potential future sales of
SERM products. Royalty Pharma and
Ligand Pharmaceutical amended their royalty agreement in October 2003 for the three
SERM products. Under the amended agreement, Royalty Pharma exercised an option to pay
Ligand US dollars 12.5 million, plus cumulative milestones of up to US dollars 2.5 million upon the launches of the three
SERMs (provided they are approved by 30 September 2005), in exchange for 0.7% of potential future sales of the products for 10 years. In November 2004,
Ligand Pharmaceuticals and Royalty Pharma further amended their existing royalty agreement for the three
SERM products. Under the terms of the revised agreement, Royalty Pharma will purchase an additional 1.625% of the
SERM products' net sales for US dollars 32.5 million, which represents an acceleration of the previous option timetable and an increase in the royalty amount as well as aggregate purchase price. Consequently, Royalty Pharma increased its rights to a total of 3.0125% of net sales of each
SERM product for 10 years following the first commercial sale of each product and has no further options.
Ligand retains an approximately equal portion of
lasofoxifene and other
SERM's net sales going forward and for periods that could exceed 10 years. The royalty rates owed to Royalty Pharma for the royalties just purchased could be reduced by one-third if product sales exceed certain thresholds. Payments from the royalty purchase are non-refundable, regardless of whether the products ever become successfully launched or not. Milestone payments owed by
Ligand's partners as products achieve development and regulatory targets will be paid to
Ligand as earned and are not included in this amended agreement. In September 2004,
Ligand Pharmaceuticals earned a milestone payment of approximately US dollars 2 million from Pfizer, payable in 181,818 shares of
Ligand stock held by Pfizer. The payment was triggered by Pfizer's NDA submission for
lasofoxifene in August 2004. Under the terms of the agreement between
Ligand and Pfizer,
Ligand is entitled to receive an additional milestone upon successful approval of
lasofoxifene. On 19 August 2004, Pfizer filed an NDA with the US FDA for
lasofoxifene for the prevention of
osteoporosis in postmenopausal women. Product launch is forecasted to occur in 2006-2007.
Ligand reported in January 2004 at the 22nd Annual JP Morgan Healthcare Conference that it anticipated the availability of phase III data and NDA filing sometime in 2004.
Lasofoxifene has undergone two phase III studies with Pfizer in the US as an orally administered
therapy for
postmenopausal osteoporosis. In June 2003, Pfizer reported that enrolment was completed in a trial evaluating
lasofoxifene in the prevention of bone loss. The trial also evaluated
lasofoxifene's effect on
lipid levels. The trial enrolled approximately 2000 postmenopausal women. Another trial was conducted among 8500 patients to investigate
lasofoxifene in the treatment of fractures. In addition, Pfizer began a third worldwide phase III trial to evaluate whether
lasofoxifene reduced the risk of vertebral fractures,
breast cancer and
cardiovascular disease. At the 10th Annual Meeting of the Biotechnology Industry Organization (BIO-2003),
Ligand also confirmed that
lasofoxifene was in phase III development for
breast cancer.
Lasofoxifene is under clinical evaluation as a treatment for vaginal
atrophy. According to Pfizer's pipeline in November 2004, the company anticipates regulatory submission for vaginal
atrophy by the end of 2004. In June 2002,
Ligand estimated that
lasofoxifene has the potential to reach sales of US dollars 1-2 billion, pending approval.