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news.Cell Therapeutics is to acquire Systems Medicine, a privately held oncology company, in a stock for stock merger valued at $20 million. The acquisition will provide it with rights to a cancer killing agent.
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SMi stockholders could also receive a maximum of $15 million in additional consideration, payable in either cash or shares of CTI common stock, upon the achievement of certain regulatory milestones.
Key highlights of the acquisition include worldwide rights to Brostallicin, a DNA minor groove binding agent with proven anti-tumor activity and a favorable safety profile in more than 200 patients treated to date in clinical trials. The agent is currently in Phase II clinical studies, and has potential for market approval as early as 2010.
Under the terms of the agreement, SMi will continue to operate as a wholly-owned subsidiary of CTI, utilizing its genomic-based platform to guide development of CTI’s oncology products, including Brostallicin, the cancer killing agent.
“We expect Brostallicin and SMi will fit perfectly with CTI’s effort to develop individualized cancer medicines where genomic targeting of specific populations of patients should increase the probability of clinical success and patient benefit, while at the same time offering us the potential to market an additional solid tumor indication product in the US alongside our Xyotax program with partner Novartis,” commented James Bianco, president and CEO of CTI.