29th Sep 2021 09:15
(Alliance News) - AstraZeneca PLC on Wednesday said it has exercised an option buy out Caelum Biosciences Inc in a bid to accelerate the development of organ function drug CAEL-101.
Shares were up 2.2% at 8,661.00 pence in London on Wednesday morning.
The Cambridge-based pharmaceuticals firm's recently acquired rare diseases division, Alexion, already owns a non-controlling stake in Caelum currently worth USD150 million.
In a deal struck in 2019, Alexion also has an exclusive option to buy the remainder of Caelum for USD150 million. It will then make additional payments of up to USD350 million, conditional on regulatory and commercial milestones.
Caelum is a Bordentown, New Jersey-based biotechnology company dedicated to developing treatments for AL amyloidosis, a rare disease that affects the heart, kidneys and other organs.
The deal will see Alexion take forward Caelum's late-stage trial of CAEL-101, which is in Phase 3 clinical development.
"With a median survival time of less than 18 months following diagnosis, there is an urgent need for new treatments for this devastating disease," said Marc Dunoyer, Alexion chief executive.
"CAEL-101 has the potential to be the first therapy to target and remove amyloid deposits from organ tissues, improve organ function, and, ultimately, lead to longer lives for these patients."
By Josie O'Brien; [email protected]
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