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Abbott in cancer drug deal
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July 26, 1999: 9:53 a.m. ET
Will work with NaPro to bring competitor to Bristol-Myers' Taxol to U.S. market
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NEW YORK (CNNfn) - Abbott Laboratories and NaPro BioTherapeutics Inc. announced a deal Monday worth approximately $125 million to develop the chemotherapy drug paclitaxel in the United States and Canada.
The drug, already offered by NaPro in several markets abroad, would compete domestically with Taxol, made by Bristol-Myers Squibb (BMY). Sales of Taxol, a key product for Bristol-Myers, rose 19 percent to $362 million in the company's recently completed second quarter.
Under the agreement, Abbott will pay NaPro up to $125 million in development and marketing milestone payments, a secured loan and an equity investment. The first payment, of $5 million, already has been made.
If the drug receives approval by the Food and Drug Administration and goes on the market, Abbott also will pay royalties to NaPro on drug sales.
"Obtaining access to paclitaxel is a major step in Abbott's plan to expand our presence in the oncology market," Richard Gonzalez, Abbott's senior vice president for hospital products, said.
Shares of Abbott (ABT), a pharmaceutical and medical products company based in Abbott Park, Ill., dropped 3/16 to 42-7/8 on the New York Stock Exchange Friday.
NaPro stock (NPRO) was up 3/4 to 2-7/8 on the Nasdaq early Monday. 
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NaPro Biotherapeutics
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