Biogen Idec is to acquire all shares of Conforma for $150 million, payable at closing, and up to an additional $100 million upon the achievement of certain development milestones. The transaction is expected to close in the second quarter of 2006.
The transaction has been approved by the boards of directors of both companies but is subject to approval by the stockholders of Conforma. Following the close of the transaction, Conforma’s operations and employees will be integrated into Biogen Idec’s San Diego campus, the company’s oncology center of excellence.
Conforma, founded in 1999, is chiefly involved in the discovery and development of drugs that inhibit heat shock protein 90 (HSP90) molecules, which are involved in protecting and supporting the growth of cancer cells across a range of tumor types, and which also play a role in tumor resistance to a number of leading cancer therapies.
“Global leadership in oncology – from discovery to development to commercialization – is a major strategic objective for Biogen Idec,” said James Mullen, Biogen Idec’s president and CEO. “Conforma’s platforms in the promising area of HSP90 antagonists provide significant opportunities to develop drugs for a range of solid tumors. Through this transaction, Biogen Idec will also broaden our therapeutic opportunities in the cancer field while adding Conforma’s talented scientific team to our oncology group.”