The Board of Australian Cancer Technology has signed an agreement to acquire, through its wholly-owned US subsidiary Adjuvantys Inc., the business of Galenica Pharmaceuticals Inc., a private US biopharmaceutical company, for US$5.0 million in a largely scrip offer.
Approximately US$12.0 million has been invested in the development of Galenica's proprietary technology which comprises three families of semi-synthetic immune enhancers, or adjuvants, used to stimulate the immune system. Employed as stand-alone therapeutics, or as an essential component in vaccines, these compounds have been or are currently being used in cancer vaccines in two phase I and one phase I/II clinical trials at leading cancer centres in the US.
Galenica also has a licensing agreement with Pfizer Animal Health for a series of animal vaccines in development which will use Galenica's adjuvant, and with Endocyte for a novel active immune therapy for kidney cancer. The first milestone payment pursuant to the Pfizer agreement is expected in 2005.
Pfizer Holdings Europe, an affiliate of Pfizer Inc., and SuperGen are both shareholders in Galenica.
AustCancer managing director Paul Hopper described this transaction as a "business making" deal for the company. "We have been working aggressively on expanding our portfolio of developmental drugs. Galenica brings us exclusive rights to a novel technology with considerable potential and two products candidates already in the clinic. Galenica's patent estate includes five granted patents and one pending" he said.
"Also, Galenica's technology platform is synergistic with what AustCancer is already doing - immune enhancers are critically important in vaccines and the development of vaccines is one of our core businesses," said Hopper.
Galenica's founder and internationally recognized vaccinologist Dr. Dante Marciani welcomed the proposed acquisition. "AustCancer and Galenica both have promising development programs in the area of cancer vaccines. The combined entity will commercially exploit this strong technology platform with current and new strategic partners, and continue the ongoing development of a number of novel vaccines in the U.S. and Europe," said Dr. Marciani.
As part of the acquisition, Dr. Marciani will join AustCancer and continue to run the business. AustCancer sees its leading edge anti-idiotypic cancer vaccine Pentrys as an obvious candidate for evaluation with the Galenica adjuvants. Pentrys is in a phase IIb clinical trial on prostate cancer patients at three leading Melbourne hospitals.