Pharmaceutical Business review

Onxeo acquires DNA Therapeutics

AsiDNA breaks the cycle of tumor DNA repair to speed up cancer cell death.

DNA Therapeutics was acquired for an upfront payment of €1.7m paid at closing by issuing 553,819 new Onxeo shares at a price per share of €3.01.

Onxeo will make further payment in the form of milestones including €1m in cash or in the company’s shares, at its sole discretion, after successful start of a phase II trial in a selected indication as well as royalty payments on future commercial sales.

The deal also includes up to €25m payment per indication for its development and approval.

In conjunction with the transaction, several shareholders of DNA Therapeutics have agreed to invest €1m in cash in Onxeo via a private placement reserved to a limited number of investors.

AsiDNA is a short double-stranded DNA that acts as a decoy, offering a false DNA break signal to attract DNA repair proteins which avoids the recruitment of repair enzymes to the site of actual DNA damage.

In several preclinical animal models, AsiDNA showed an increase in the efficacy of radiotherapy, radiofrequency ablation, and chemotherapy.

Onxeo said AsiDNA has not lead to toxicity with repeated cycles of treatment, making it a promising candidate for monotherapy and combination therapy.