SuperGen to acquire Astex Therapeutics
Creating an international developer of cancer drugs
US developer of cancer drugs SuperGen has agreed to acquire UK-based Astex Therapeutics, a biotechnology company located on Cambridge Science Park that is developing treatments for cancer and viruses.
The new combined entity will be called Astex Pharmaceuticals, with US$120m in cash after the deal is completed.
SuperGen, of Dublin, California, said it would buy Astex for US$25m in cash, plus 35% of the shares in SuperGen, then a further $30m in additional cash or stock over a period of 30 months.
Pending approval from shareholders and regulators, the deal is expected to close in July.
SuperGen said the combined company would have seven drugs candidates, including four that are in or entering into Phase II clinical trials. Three of the drugs are currently being developed with large pharmaceutical companies, including GlaxoSmithKline, Novartis and AstraZeneca. It will also have revenue from sales of Dacogen, which is marketed in North America by Eisai and in the rest of the world by Johnson & Johnson.
Astex Pharmaceuticals will be eligible to receive $2bn in potential future milestone payments and royalties.
James Manuso, currently chairman, president and chief executive of SuperGen, will become chairman and ceo of Astex Pharmaceuticals, and Harren Jhoti, chief executive of Astex Therapeutics Limited, will become president and a member of the board.
Jhoti said: ‘Astex Pharmaceuticals will emerge with an industry leading drug discovery platform that we believe will continue to generate a vibrant and growing r&d pipeline, backed by an established revenue stream and a strong capital foundation.’
