Blasted for high price of old MD drug, Marathon sells rights

Marathon Pharmaceuticals, sharply criticized for getting an inexpensive old steroid drug officially approved for treating Duchenne Muscular Dystrophy and then setting a U.S. list price of $89,000 per year, is selling rights to the drug to a company focused on rare genetic conditions.

Privately held Marathon had delayed launching its Emflaza, approved in early February, after politicians and others questioned the steep price. The drug is available as generic deflazacort in other countries for roughly $1,000 per year.

Now Marathon, based in Northbrook, Illinois, has sold Emflaza's rights to PTC Therapeutics of South Plainfield, New Jersey, for $140 million plus sales-based royalties. PTC Therapeutics said it expects the deal to close in about 30 days and then will announce its launch plans and price for Emflaza.