Celgene to Acquire Abraxis BioScience

Celgene and Abraxis BioScience jointly announced the signing of a definitive merger agreement, under which Celgene has agreed to acquire Abraxis BioScience. The acquisition of Abraxis BioScience accelerates Celgene's strategy to become a global leader in oncology. The transaction adds Abraxane (paclitaxel protein-bound particles for injectable suspension) (albumin-bound) to the company's existing portfolio of leading cancer products. The FDA approved Abraxane in January 2005 for the treatment of breast cancer after the failure of a combination chemotherapy for metastatic disease or relapse within six months of adjuvant chemotherapy. It was approved by the EMEA in January 2008 for a similar indication.

Under the terms of the merger agreement, each share of Abraxis BioScience’s common stock will be converted into the right to receive an upfront payment of $58.00 in cash and 0.2617 shares of Celgene’s common stock. The upfront payment values Abraxis BioScience at ~$2.9B, net of cash. Each share will also receive one tradeable contingent value right (CVR), which entitles its holder to receive payments for future regulatory milestones and commercial royalties.

Source: Celgene

 

Infinity and Intellikine to Develop Therapies Targeting PI3K Isoforms

Infinity Pharmaceuticals and Intellikine announced an agreement, under which Infinity obtained global development and commercialization rights to Intellikine's portfolio of inhibitors of the delta and gamma isoforms of phosphoinositide-3-kinase (PI3K). PI3Ks are a family of enzymes involved in cellular functions, including cell proliferation and survival, cell differentiation, intracellular trafficking, and immunity. Among these inhibitors is INK1197, an orally available dual delta/gamma-specific inhibitor of PI3K, for which clinical development in inflammatory diseases is expected to commence in 2011.

Under the terms of the agreement, Intellikine will receive $13.5M in initial license payments; committed research funding over the first two years of the relationship to identify additional novel delta, gamma, and dual delta/gamma-specific inhibitors of PI3K for future development; up to $25M in success-based milestones for the development of two distinct product candidates; and up to $450M in success-based milestones for the approval and commercialization of two distinct products. In addition, Intellikine will be entitled to receive royalties upon successful commercialization of products licensed to Infinity. For products directed primarily at oncology indications, Intellikine will have the option – at the end of Phase II clinical development and upon payment of an option fee – to convert its royalty interest in US sales into the right to share 50% of the profits and losses on US development and commercialization, and to participate in up to 30% of the detailing effort for these products in the US.

Source: Infinity Pharmaceuticals

 

Sanofi-aventis to Acquire TargeGen

TargeGen has agreed to be acquired by Sanofi-aventis. Formed in 2001, TargeGen’s most advanced drug candidate is TG101348, an internally discovered, oral, potent, and highly selective JAK2 kinase inhibitor, being developed for the treatment of patients with myeloproliferative diseases, including primary and secondary myelofibrosis (MF) and polycythemia vera (PV). There are currently no approved drugs to treat MF or PV.

Preliminary data from a 59-patient trial involving the treatment of MF patients with TG101348 was presented at the American Society of Hematology (ASH) Conference in New Orleans, in December 2009. Other pre-clinical data presented at the ASH suggested that in addition to the treatment of certain myeloproliferative disorders, TG101348 may also have potential utility in the treatment of certain forms of leukemia, lymphoma, other hematological malignancies, and blood disorders. Under the agreement, the ultimate purchase price will depend on the achievement of certain future milestones events and will total $560M if such milestones are fully realized.

Source: TargeGen

 

MorphoSys and Xencor Collaborate for Clinical Antibody Program

MorphoSys and Xencor announced the signing of a worldwide exclusive license and collaboration agreement for an antibody in Phase I clinical development. The agreement provides MorphoSys with an exclusive worldwide license to XmAb5574, a high potency monoclonal antibody developed by Xencor for the treatment of B-cell malignancies. XmAb5574 will be renamed MOR208; it is a humanized anti-CD19 monoclonal antibody for the treatment of B-cell malignancies.

As part of the agreement, the companies will collaborate on the Phase I trial in patients with chronic lymphocytic leukemia (CLL) in the US, for which Xencor will continue to carry the costs under its development plan. MorphoSys will be solely responsible for further clinical development. Xencor will receive an upfront payment of $13M, and will be eligible to receive development-, regulatory- and commercialization-related milestone payments and tiered royalties based on product sales. Further financial terms were not disclosed.

Source: MorphoSys

 

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