Pharmacyclics acquires Celera cancer compounds

Under the terms of the agreement, Pharmacyclics has acquired Celera technology and intellectual property relating to drugs that target histone deacetylase (HDAC) enzymes, selective HDAC enzymes, angiogenesis molecules and B cell tyrosine kinases involved in immune function.

Pharmacyclics has acquired HDAC inhibitor drug candidates in phase I clinical trials for the treatment of refractory solid tumors, a first-in-class HDAC-8 selective inhibitor in preclinical development for the potential treatment of cancer, and a first-in-class Factor VIIa inhibitor targeting a tumor signaling pathway involved in angiogenesis, tumor cell growth and metastases, and with potential applications in anticoagulation and cardiology.

The company has also acquired B-cell-associated tyrosine kinase inhibitors, which have potential utility in lymphoma and autoimmune diseases, such as rheumatoid arthritis.

The financial terms of the transaction include an upfront cash payment of $2 million and an equity payment of between 500,000 and one million shares of Pharmacyclics common stock, depending on Pharmacyclics’ stock price during a specified period. If these programs meet certain developmental stage milestone events and result in drugs that are approved and commercialized in key geographical markets they may generate potential future milestone payments to Celera of up to $144 million.

In addition, Celera will be entitled to royalty payments in the mid to high single digits based on annual sales of any drugs commercialized from the three programs.

“Together with our late-stage lead product candidate, Xcytrin (motexafin gadolinium) Injection, these novel programs provide us with a deep pipeline of diverse products and strengthen our developing oncology franchise,” said Dr Richard Miller, president and CEO of Pharmacyclics. “The Celera programs are an ideal fit with our small-molecule chemistry technology platform and oncology clinical development core competency.”