Merck & Co., Inc., one of the world's leading research-based pharmaceutical companies, and Aton Pharma, Inc., a privately held biotechnology company focusing on the development of novel treatments for cancer and other serious diseases, announced that they have entered into a definitive agreement under which Merck will acquire Aton.
Under the terms of the agreement, Merck will acquire 100 per cent of the equity of Aton and Aton will become a wholly owned subsidiary of Merck. Consideration for the acquisition will consist of upfront and contingent payments based upon the regulatory filing, approval and sale of products. Additional financial details were not disclosed.
Aton, which was founded in 2001 and is located in Tarrytown, NY, has been focused on the identification and development of small molecule inhibitors of chromatin-modifying enzymes. The company's clinical pipeline of histone deacetylase (HDAC) inhibitors represents a promising class of anti-tumour agents with a novel mechanism of action.
Aton's lead product candidate, known as suberoylanilide hydroxamic acid (SAHA), has been studied in Phase I clinical trials in cancer patients and is currently in Phase II clinical trials for the treatment of cutaneous T-cell lymphoma (CTCL). CTCL is a slow growing form of cancer in which some of the body's white blood cells - known as T-lymphocytes or T-cells - become malignant. Normal T-cells function by regulating the body's immune system in its job of fighting infections and other harmful things in the body. In CTCL, the malignant T-cells are drawn to the skin, where some are deposited. Patients usually develop CTCL after age 50.
SAHA is also being studied for the treatment of patients with other types of cancer, including leukemia (cancer of the blood or blood-forming organs), multiple myeloma (cancer formed by cancerous plasma cells in the blood), and solid tumors, such as breast and colorectal cancer. Results from Phase I trials showed that SAHA has excellent oral bioavailability and can inhibit its target enzyme, HDAC, at doses that have been generally well tolerated by patients in clinical trials to date. Bioavailability is the degree of drug absorption through oral administration.
"We are delighted about our agreement to acquire Aton Pharma, a company that has in a few short years earned a reputation for expertise in cancer research," said Stephen Friend, senior vice president for Molecular Profiling and Basic Cancer Research at Merck Research Laboratories. "Our acquisition of Aton will enhance Merck's internal research efforts to develop potential new medicines for the treatment of cancer, which is the second leading cause of death in the United States and in much of the world."
According to the American Cancer Society (ACS), cancer is second only to heart disease as a leading cause of death in the US. Half of all men and one-third of all women in the US will develop cancer during their lifetimes. In 2001, cancer was responsible for the deaths of 1 in 5 Americans. This year, the ACS estimates that more than 563,000 Americans will die from different cancers. Half of all cancer deaths in the US are attributable to breast, lung, colorectal and prostate cancers, according to the ACS.
"We are excited to see our team and our product pipeline become part of the superb scientific environment of Merck," said Nicholas Bacopoulos, CEO of Aton Pharma. "Aton has demonstrated the anti-tumor potential of SAHA in clinical trials to date and we are hopeful that the Merck and Aton teams together can expedite the development and approval of this novel agent, successfully fulfilling the goals of our founders and shareholders."
The acquisition is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions. The two companies expect to complete the acquisition in the first quarter of 2004.