AstraZeneca buys biotech firm for $440m
London, October 15, 2013
British drugmaker AstraZeneca said on Tuesday its MedImmune unit would buy biotech company Spirogen for up to $440 million to bolster its research and development pipeline in oncology.
Privately held Spirogen focuses on antibody-drug conjugate technology, which has the potential to directly target cancer tumors while safeguarding healthy cells, AstraZeneca said.
AstraZeneca said it would pay an initial $200 million plus a further $240 million if Spirogen meets development targets.
It will also pay $20 million to take an equity investment in Swiss-based ADC Therapeutics, which has a licensing agreement with Spirogen.
"The cutting-edge technologies developed by Spirogen and ADC Therapeutics complement MedImmune's innovative antibody engineering capabilities, enabling us to accelerate antibody-drug conjugates into the clinic," said MedImmune Executive Vice President Bahija Jallal.
Oncology treatments, both traditional "small cell" pills and injectable biologics, has been prioritized as a research area by AstraZeneca Chief Executive Pascal Soriot, who used to head Roche's Genentech biotech unit.
MedImmume, the US biotech business that AstraZeneca bought in 2007 for $15.6 billion, is key to the strategy.
The unit is focused on two key areas in oncology development: antibody-drug conjugates and immune-mediated cancer therapy, which aims to harness the power of the patient's own immune system to fight cancer.-Reuters