IsoRay Inc (ISR), which makes the Cesium-131 internal radiation therapy (brachytherapy) isotope, has acquired exclusive global licensing rights to Iotrex from Dr. Reddy’s Laboratories (RDY). Iotrex is a radioactive liquid solution used in the treatment of brain cancer.
Iotrex is a key component in the GliaSite radiation therapy system, the only approved balloon catheter in the U.S. used in brachytherapy treatment of brain cancer. IsoRay acquired the exclusive global distribution rights to GliaSite from Hologic Inc (HOLX) in June 2010. Iotrex is approved by the U.S. Food and Drug Administration (“FDA”) for use with GliaSite.
Brain cancer is among the fastest growing cancers with more than 575 people diagnosed with this condition in the U.S. each day. Treatment of brain tumor is challenging as they are very difficult to remove completely given the need to avoid damaging the brain.
Typically, surgeons remove most of the tumor followed by treatment of the surrounding areas with radiation therapy. However, brain tumors often recur shortly following the surgery.
The GliaSite balloon catheter is used to perform brachytherapy following the removal of the brain tumor. It is inserted into the brain (within the resection cavity of the removed tumor) and is inflated with a pre-specified amount of radioactive solution (such as Iotrex) followed by the delivery of radiation to the surrounding tissues.
GliaSite offers a number of advantages including a more targeted dose delivery of liquid radiation which lowers the impact on brain tissues surrounding the tumor. Moreover, the more targeted therapy also reduces the chance of recurrence of the tumor, thereby extending patient survival.
The Iotrex licensing deal represents a significant milestone for IsoRay as it moves towards the U.S. launch of the GliaSite system (expected in August 2011). The company expects GliaSite to be a major contributor to its top line over the next 2-3 years.
Washington-based IsoRay develops and markets isotope-based medical products and devices for the treatment of cancer and other malignant diseases. It competes with Theragenics (TGX) and C.R. Bard (BCR), among others.
IsoRay is optimistic that expanded market traction of Cesium-131 coupled with ongoing clinical developments would spur growth moving forward. The company is currently seeking FDA approval for a liquid form of Cesium-131 for use with the GliaSite system.
IsoRay’s strategy to extend the application of its treatments beyond the core prostate cancer indication has helped it to post healthy revenues in third-quarter fiscal 2011, which beat the Zacks Consensus Estimate. Sales were boosted by higher adoption of the company’s internal radiation therapy across the U.S.
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