1st Feb 2007 07:02
AstraZeneca PLC01 February 2007 AstraZeneca Acquires Arrow Therapeutics To Broaden Anti-Infective Capabilities AstraZeneca today announced an agreement to acquire Arrow Therapeutics Ltd., aprivately owned UK biotechnology company, focused on the discovery anddevelopment of anti-viral therapies. The total share capital of ArrowTherapeutics will be purchased for $150m cash, subject to debt and workingcapital adjustment. The transaction is expected to close early in 2007. The deal is an important strategic step for AstraZeneca, strengthening itsportfolio of promising anti-infective treatments from external opportunities andproviding a widely recognised expert group and technology platform in an area ofresearch that complements internal capabilities in anti-bacterials. The dealalso fits with AstraZeneca's decision to re-focus its disease area research withinfection and anti-bacterials now one of the company's key therapy areas. The anti-viral programmes developed by Arrow Therapeutics, include severaldifferent approaches towards Hepatitis C Virus (HCV) and Respiratory SyncytialVirus (RSV). The acquisition of Arrow Therapeutics augments AstraZeneca's portfolio withclinical and pre-clinical compounds and programmes. These assets include twoanti-HCV compounds which both target the novel NS5a protein, including A-831 inPhase I. Arrow's most advanced compound is RSV604, currently in Phase IIclinical development and partnered with Novartis. RSV604 is a first-in-class,small molecule, oral anti-RSV compound. John Patterson, Executive Director, Development, AstraZeneca, said: "ArrowTherapeutics is an excellent opportunity to acquire a world-class anti-viralcapability to add to our own anti-bacterial research capabilities and promisingearly stage compounds. AstraZeneca is determined to focus on areas of highestunmet needs and we have identified anti-bacterials and anti-virals as a keyopportunity." Jan Lundberg, Executive Vice President of Discovery, AstraZeneca, added: "Weintend to utilise the best of both organisations with an innovation-led cultureparamount; we'll look to preserve the entrepreneurial culture of ArrowTherapeutics, while at the same time gaining the benefits available to us fromapplying the breadth and depth of AstraZeneca's global capabilities." Ken Powell, CEO of Arrow Therapeutics, said: "We are delighted to joinAstraZeneca, which has a proven track record in successfully enhancing itsresearch capabilities by the acquisition of smaller biotechnology companies. Ourscientists are looking forward to working within the AstraZeneca researchframework. We will be helping to build a complementary anti-viral franchise byutilising the resources of AstraZeneca to realise the full potential of theArrow Therapeutics programmes and to develop a major pipeline of new anti-viralmedicines. We are very excited about this opportunity for our team who have madesuch an important contribution to the success of Arrow Therapeutics." Arrow Therapeutics currently has 57 employees at its facility in London, UK.AstraZeneca's immediate plans are for Arrow Therapeutics to become a hub foranti-viral discovery activities remaining at its present central London site. The urgent need for novel Hepatitis C inhibitors has been well documented, withan estimated 170 million sufferers worldwide. The current Standard of Caretreatment (Pegylated Interferon + ribavirin) has a poor side effect profile andis only effective in around 50 per cent of patients. As with HIV/AIDS, multipledrugs in combination therapy are likely to be needed to overcome drugresistance. The value of the Hepatitis C market was approximately $2.2 billionin 2005 and is forecast to grow substantially to $4.4 billion in 2010 and $8.8billion in 2015. RSV is a major threat to the very young, the elderly and the immuno-compromisedand with no other effective treatment available represents a major unmet medicalneed. Although best known as an infection in babies where it causes severebronchiolitis, a recent editorial in the New England Journal of Medicine hasalso stressed its significant effects in the elderly. RSV is also implicated inmany asthma & COPD attacks. Currently, the only widely used intervention isMedImmune's monoclonal antibody, Synagis (palivizumab), which is used to preventinfection in high risk infants. However, this antibody is used in a smallpercentage of babies and although it is only effective given prior to infection(unlike a treatment therapy) it has reached sales of 'blockbuster' proportionsand proven the RSV market. AstraZeneca is a major international healthcare business engaged in theresearch, development, manufacture and marketing of prescription pharmaceuticalsand the supply of healthcare services. It is one of the world's leadingpharmaceutical companies with healthcare sales of over $23.95 billion andleading positions in sales of gastrointestinal, cardiovascular, respiratory,oncology and infection and neuroscience products. AstraZeneca is listed in theDow Jones Sustainability Index (Global) as well as the FTSE4Good Index. Arrow Therapeutics was founded in 1998, and is focused exclusively on novelantiviral drug discovery and development. Based in central London with 57employees, the product pipeline includes novel antiviral lead and clinicalcompounds. Arrow's lead compound RSV604 to treat Respiratory Syncytial Virus(RSV) is in Phase ll clinical studies and is partnered with Novartis. TheHepatitis C programme consists of multiple series from different chemicalclasses. The most advanced compounds inhibit NS5a, a novel viral target (formore detail on NS5a please see www.arrowt.co.uk). The lead compound, A-831, iscurrently in Phase I trials and A-689, a compound from the second NS5a series,has just entered preclinical development. Arrow also has a Hepatitis Cpolymerase programme in lead optimisation. Its current shareholders includeinvestment funds represented by Atlas Venture, Alta Partners, 3i, GIMV, ITX,Merlin BioMed Group, NIF, Northern Venture Managers, Scottish Widows InvestmentPartnership, TVM Capital and Unibio. 1 February 2007 Media Enquiries: Edel McCaffrey, Tel: +44 (0) 207 304 5034 Steve Brown, Tel: +44 (0) 207 304 5033 Investor Enquiries: Mina Blair, Tel: +44 (0) 207 304 5084 Jonathan Hunt, Tel: +44 (0) 207 304 5087 Karl Hard, Tel: +44 (0)207 304 5322 Ed Seage, Tel: +1 302 886 4065 Jorgen Winroth, Tel + 1 212 579 0506 Arrow Therapeutics: Ken Powell, Chief Executive Officer, Tel: +44 (0) 207 015 1002 Annie Clayton, Investor Relations and Marketing, Tel: +44 (0) 207 015 1004 Capital MS&L Mary Clark - Director Life Sciences Tel: 020 7307 5336. Astrid Josephson - Consultant Tel: 020 7307 5346. -Ends- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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