VASTox acquires key assets from MNL Pharma

UK-based biotech company VASTox has acquired the key assets of MNL Pharma, the private UK drug discovery company that went into administration in October 2006.

This acquisition will both secure a pipeline of early stage drug candidates focused in particular on oncology and strengthen VASTox's services offering by bringing in experienced researchers with skills that are highly complementary to its current capability.

The pipeline of drug candidate molecules acquired includes MNLP462a, MNL's lead oral cancer drug candidate currently in late-stage preclinical development. It is an immuno-modulator with a novel mechanism of action that stimulates the immune system without activating toxic inflammatory responses. VASTox also acquires all intellectual property relating to these drug candidates.

Other assets forming part of the transaction include a modern carbohydrate chemistry laboratory in Aberystwyth staffed by 12 researchers and managed by MNL's former research director, Professor Robert Nash, a world-leading phytochemist; and A chemical library of more than 1,300 rare or novel drug-like compounds.

These assets have been acquired by VASTox for an initial cash consideration of £240,000 payable to the administrators of MNL. The Board is confident that with service income and grants the Aberystwyth site will be cash-neutral within a year.

'The assets that we are acquiring today represent an excellent strategic fit and enhance both VASTox's drug discovery and service capabilities,' said Dr Steven Lee, ceo of VASTox.

'The addition of an exciting, novel and highly diverse new library of drug-like compounds that we can screen through our existing zebrafish and fruitfly models is anticipated to yield new drug candidates to progress into development programmes. Furthermore, we gain access to a promising anticancer candidate, which provides a near-term out-licensing opportunity.'