Cardiome to acquire Artesian Therapeutics

Under the terms of the proposed acquisition, payments to Artesian shareholders are contingent on the achievement of certain pre-defined clinical milestones. The milestone payments are $32 million for each of the first two drug candidates from the Artesian programs that reach NDA approval.

At completion of the transaction, Oxford Bioscience, Artesian’s largest shareholder, will invest $7.5 million into Cardiome at a price of approximately $7.24 per share, a 5% premium over the five day average closing price on the Nasdaq.

“This acquisition reflects Cardiome’s objective of expanding our product pipeline in the cardiology arena,” said Bob Rieder, president and CEO of Cardiome. “We are excited at the potential to obtain several such high-potential drug candidates from this acquisition, along with the financial resources required to drive that development.”

Artesian currently has two advanced small molecule discovery programs in the area of congestive heart failure. Artesian’s lead program is focused on a series of dual-pharmacophore compounds designed to simultaneously inhibit the cardiac phosphodiesterase enzyme (PDE3), causing inotropic effects, while inhibiting the L-Type Calcium channel to protect against calcium overload.

Artesian’s second program focuses on a novel strategy to attenuate the deleterious effects of the excessive neurohormonal activation which occurs in congestive heart failure.

The transaction is due to close in October 2005 subject to conditions.