Biogen Idec to Expand Oncology Pipeline with Acquisition of Conforma Therapeutics
Biogen Idec and Conforma Therapeutics Corporation announced that they have signed a definitive merger agreement for the acquisition of Conforma by Biogen Idec.
Conforma, founded in 1999, is focused on the discovery and development of drugs that inhibit heat shock protein 90 (HSP90) molecules, which are involved in protecting and supporting the growth of cancer cells across a range of tumor types, and which also play a role in tumor resistance to a number of leading cancer therapies. The company has advanced two compounds into Phase I clinical trials: CNF1010, a proprietary form of the geldanamycin derivative 17-AAG; and CNF2024, a totally synthetic, orally bioavailable HSP90 inhibitor.
The transaction is expected to close in the second quarter of 2006. Upon completion, Biogen Idec will acquire all of the issued and outstanding shares of the capital stock of Conforma for $150 million, payable at closing, and up to an additional $100 million upon the achievement of certain development milestones. The transaction, which has been approved by the boards of directors of both companies, is subject to approval by the stockholders of Conforma and satisfaction of other customary closing conditions.
Following the transaction's close, Conforma's operations and employees will be integrated into Biogen Idec's San Diego campus. Conforma's North American and European rights to Amrubicin, an anthracycline anticancer drug that Conforma had licensed from Dainippon Sumitomo Pharma Co., Ltd., will be transferred out of Conforma into a new start-up specialty pharmaceuticals company, Cabrellis Pharmaceuticals Corporation, prior to the close of this transaction.
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