Advanced Accelerator Application SA (NASDAQ:AAAP) has inked a NETSPOT distribution deal with Cardinal Health Inc (NYSE:CAH), bringing to two the number of partners tapped to supply the patented product. NETSPOT is a kit that prepares the injection of Ga 68 dotatate for injection for the localization of tumors in PET scans.
AAAP said that the agreement gives Cardinal Health the rights to supply NETSPOT to hospitals and imaging centers in the U.S. The company hopes that the deal with Cardinal will ensure that NETSPOT is available in all treatment and diagnosis locations where strong demand for the product is expected.
AAAP is betting that it can tap into Cardinal Health’s extensive network and expertise in the distribution of kit-based products to make NETSPOT broadly available in the U.S., thus unlocking more sales opportunities for the product.
Advanced Accelerator Application CEO Stefano Buono said that the distribution agreement with Cardinal is non-exclusive. That means that AAAP is free to sign up multiple similar deals with other distributors to carry NETSPOT in the U.S. and elsewhere.
Besides betting on the reputation of distribution partners to make NETSPOT popular, AAAP also touts the product as important in improving the accuracy of diagnosis and reducing patient’s radio exposure. NETSPOT is designed for use in both adult and pediatric patients.
AAAP didn’t disclose the financial terms of the NETSPOT distribution agreement with Cardinal Health. It limited itself to saying in a press release that it expected mutual benefits in the arrangement. While AAAP will be enjoying exposure to an extensive distribution network for NETSPOT in the U.S., Cardinal Health will be carrying a potentially lucrative product for the diagnosis market.
Other NETSPOT distributors
Cardinal Health becomes the second partner to be tapped for the distribution of NETSPOT. AAAP earlier this year signed Zevacor Pharma to carry the product, targeting advanced imaging centers.
NETSPOT has already received orphan drug designation.