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Healthcare deal sparks windfall | Healthcare deal sparks windfall |
| Written by Tony Quested | |
| Wednesday, 16 April 2008 | |
|
The acquisition of a Slough-based cancer specialist for £89 million by
one of the world’s leading research-focused healthcare firms is
providing major returns for many of the region’s biotech investment
community. Swiss giant, Roche, has signed a definitive agreement with oncology specialist, Piramed, to acquire its entire assets through an upfront cash payment of £81.5m plus a milestone payment of £7.6m, due on commencement of Phase II clinical trials of Piramed’s oncology programme. Founded five years ago by a team of two scientists and a vibrant entrepreneur, Piramed was soon backed by £10m of funding from Sir Chris Evans’ Merlin Biosciences and JP Morgan Partners. The company developed small molecule therapeutics targeting two different forms (alpha and delta) of PI3-kinase (PI3-K), an enzyme central to a pathway known to be important in disease progression in cancer and potentially in the regulation of certain immune based diseases. The company quickly aroused strong interest in its cancer-related drug discovery technology and signed several major collaborations, including a deal worth a potential $230m with Genentech – a company in whom Roche has a majority ownership interest – for its PI3-K-alpha programme. The first product from this is currently in Phase I clinical trials. The programme targeting PI3-K-delta, predominantly for diseases such as rheumatoid arthritis will be integrated into the Roche’s inflammatory R & D portfolio. The sale of Piramed provides and eight-fold for Merlin investors, “another huge success for Fund 3,” according to Sir Christopher. “We will hand back at least $78m cash (£40m) to our Fund investors immediately and we are well on track to give over 50 per cent of Fund 3 back in cash by end of this year.” “Great news for the whole industry and Excalibur. Also great for cancer research as these brilliant new medicines are in the hands of Roche to be taken through trials.” Further benefits to the region could come at Roche’s UK Pharmaceutical headquarters in Welwyn Garden City, which has both cancer and rheumatoid arthritis expertise, if the firm decides to consolidate its operations on one site, bringing in the Slough operations.
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