23rd Dec 2005 07:01
AstraZeneca PLC23 December 2005 Acquisition Of KuDOS Pharmaceuticals Will Enhance AstraZeneca's Ability ToGenerate Novel Cancer Treatments AstraZeneca today announced an agreement to acquire KuDOS PharmaceuticalsLimited, a privately-owned UK biotechnology company, focused on the discoveryand development of oncology therapies based on the inhibition of DNA repair. Thetotal share capital of the company will be purchased for $210m cash, subject todebt and working capital adjustment. The transaction is expected to close earlyin 2006. Acquisition of KuDOS Pharmaceuticals represents an important strategic step forAstraZeneca: strengthening its portfolio of promising cancer treatments fromexternal opportunities and also demonstrating its commitment to discover,develop and bring to market innovative therapies. This transaction provides AstraZeneca with a widely-recognised expert group andtechnology platform in an area of research that complements internalcapabilities in oncology, one of the company's key therapy areas. The DNA repairplatform developed by KuDOS Pharmaceuticals, in association with its founderProfessor Stephen Jackson of Cambridge University, includes several differentapproaches towards inhibition of enzymes involved in the responses to varioustypes of DNA damage. DNA repair inhibitors have the potential to kill cancercells either as stand-alone therapy or by enhancing the efficacy of chemo- andradio-therapies. The acquisition of KuDOS Pharmaceuticals augments AstraZeneca's portfolio withclinical and pre-clinical compounds and programmes. An innovative, targetedcompound, KU 59436, an oral poly-ADP-ribose polymerase (PARP) enzyme inhibitor,is currently in phase I clinical development. PARP is a key signalling enzyme involved in triggering repair of single strandDNA damage. PARP inhibition selectively kills tumour cells lacking thehomologous recombination (HR) DNA repair pathway whilst sparing normal cells.Known defects in HR repair include the well-characterised hereditary BRCA1 andBRCA2 mutations in breast and ovarian cancer for which diagnostic tests areavailable. This therapeutic/diagnostic combination offers the exciting potentialthat KU 59436 can be developed as a new cancer monotherapy targeted for thebenefit of a definable patient population. "KuDOS Pharmaceuticals is an excellent opportunity to acquire an establishedtechnology platform additive to our own oncology research capabilities andpromising early development stage compounds at the same time," said Dr. JohnPatterson, Executive Director of Development, AstraZeneca. KuDOS Pharmaceuticals currently has some 75 employees deployed on two UK sites:Cambridge and Horsham. AstraZeneca's immediate plans are for KuDOSPharmaceuticals to become a hub for DNA repair discovery activities reportinginto the Global Cancer and Infection Research Area (CIRA) and it will remain atits present sites. CIRA also has discovery hubs in Alderley Park (UK), Boston(US) and Bangalore (India). "Our scientists are looking forward to working within the AstraZeneca researchframework, which is recognised as being a world leader in oncology," said DrGraeme Smith, Research Director of KuDOS Pharmaceuticals. 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 $21.4 billion and leadingpositions in sales of gastrointestinal, cardiovascular, respiratory, oncologyand neuroscience products. AstraZeneca is listed in the Dow JonesSustainability Index (Global) as well as the FTSE4Good Index. KuDOS Pharmaceuticals' current shareholders include investment funds representedby Advent Venture Partners, BankInvest Biomedical Venture, Euclid SR Partners,Johnson & Johnson Development Corporation, Life Science Partners (LSP), 3i, andSV Life Sciences, who were advised on the transaction by Lazard. 23 December, 2005 Media EnquiriesEdel McCaffrey, Tel: +44 (0) 207 304 5034Steve Brown, Tel: +44 (0) 207 304 5033 Investor Enquiries:Mina Blair, Tel: +44 (0) 207 304 5084Jonathan Hunt, Tel: +44 (0) 207 304 5087Ed Seage, Tel: +1 302 886 4065Jorgen Winroth, Tel + 1 212 579 0506 KuDOS Pharmaceuticals:Dr Barrie Ward, Chief Executive Officer, tel: +44 (0)1223 719719 -Ends- This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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