Xconomy reports that Celgene has cut a deal with Agios Pharmaceuticals that will make the latter as much as $130 M richer. This in exchange for rights to Agios experimental technology to starve cancer cells.
The deal is for roughly $10 M in cash and equity investments up front with the possibility of $120 M in milestone payments and even comes with an option to extend.
This is an example of a company with a new idea - killing cancer cellls by blocking metabolic enzymes. Agios has been able to show proof of concept in a study published in Nature demonstrating the starving effect on brain cancer cells.
Agios also had the foresight to bring on Genentech veteran, David Schenken, former head of cancer drug development, as its CEO. No doubt further adding to its credibility with Celgene.
“This transformational alliance provides Agios with the long-term resources and flexibility to extend our leadership position in the cancer metabolism field and to advance our capabilities and programs as an integrated, independent company,” Schenkein said in a statement.
Agios has now raised over $163 M in less than 2 years to fund its cancer metabolism treatments - and that's a lot of bacon in this economy.
Posted by Bruce Lehr April 16th 2010.
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