MDRNA acquires Cequent Pharma for $46 million
03 Apr 2010
MDRNA Inc, a biotechnology company focused on the development and commercialisation of therapeutic products based on RNA interference (RNAi), has agreed to acquire Cequent Pharmaceuticals, a Cambridge, Massachusetts-based developer of RNAi-based treatments.
The all-stock deal is valued at approximately $46 million.
The combined company will have multiple proprietary RNAi drug discovery platforms with the capability to deliver RNAi-based therapeutics via systemic, local and oral administration.
In addition, the acquisition expands MDRNA's oncology pipeline with a product for Familial Adenomatous Polyposis (FAP) - a genetic disorder that is a precursor to colon cancer - that will soon begin Phase 1 clinical testing under an Investigational New Drug application (IND) filed with the US Food and Drug Administration (FDA).
The transaction will include certain loan provisions that will fund MDRNA operations through the anticipated closing of the merger in early July 2010, Nasdaq-listed MDRNA said in a release.
"We anticipate that this transaction will accelerate the development of the most promising products of both companies," commented Bruce Thaw, chairman of MDRNA.
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