Medarex Announces Purchase of Ability Biomedical Corporation
Friday June 25, 6:00 am ET
Strategic Acquisition Strengthens Medarex's Pipeline in Inflammation and Autoimmune Disease With Anti-IP-10 Antibodies
PRINCETON, N.J., June 25 /PRNewswire-FirstCall/ -- Medarex, Inc. (Nasdaq: MEDX - News) today announced that it has entered into an agreement to acquire Ability Biomedical Corporation, a privately held Canadian biotechnology company, including Ability Biomedical's intellectual property related to IP-10. IP-10, also known as CXCL10, is a protein believed to be associated with a variety of immune disorders, including multiple sclerosis, rheumatoid arthritis, inflammatory bowel disease, chronic obstructive pulmonary disease and type I diabetes. Medarex is currently investigating MDX- 1100, a fully human antibody that targets IP-10, in preclinical studies and expects to file an Investigational New Drug (IND) application with the FDA for MDX-1100 in the first half of 2005.
Under the terms of the agreement, Medarex will acquire Ability Biomedical for approximately $4.7 million (USD) in a combination of cash and/or Medarex stock. Upon the achievement of certain development milestones with respect to Medarex's anti-IP-10 antibody program, but no later than September 4, 2007, Medarex will be required to pay an additional amount of approximately $3.56 million (USD) in cash and/or Medarex stock. In lieu of such additional payment, Medarex also has the option to revert to the original January 2003 joint collaboration agreement with Ability Biomedical. The acquisition is expected to be completed in August 2004.
"The acquisition of Ability Biomedical represents a significant milestone for the therapeutic antibody, MDX-1100. We are pleased to have the project in such expert hands," said Hans S. Keirstead, President and CEO of Ability Biomedical Corporation.
"We have been pleased with our previous collaboration with Ability Biomedical, and we believe that this acquisition strengthens our position to develop antibody therapeutics to a potentially important target implicated in many inflammation and autoimmune diseases," said Donald L. Drakeman, President and CEO of Medarex.
About Ability Biomedical Corporation
Ability Biomedical Corporation, a private, venture-sponsored firm focused on chemokine-based therapeutics, was formed in February 2002 with support and financing from GrowthWorks Capital Ltd. (manager of the Working Opportunity Fund). Ability has developed potential treatments for individuals with inflammatory and autoimmune diseases. With locations in Vancouver, BC (Ability Biomedical Corporation) and Irvine, CA (Ability Biomedical (USA) Corporation), the firm has leveraged discoveries made at the University of California, Irvine by Drs. Thomas E. Lane and Hans S. Keirstead. |
