Therapeutic Antibody Companies EvoGenix & Absalus Combine Operations
Tuesday April 5, 12:30 am ET
SYDNEY, Australia, April 5 /PRNewswire/ -- Australian protein therapeutics company EvoGenix Pty Ltd today announced a merger with California-based Absalus Inc. to create an integrated company with a primary focus on developing new antibody-based drugs.
EvoGenix and Absalus own complementary technologies which, when combined, are capable of streamlining the identification of new antibody drug candidates and improving the development of safe and effective human therapeutic antibodies.
The merger was achieved through an all scrip deal worth about $8 million.
Australian-based EvoGenix will retain responsibility for corporate strategy and management in the expanded company, with the bulk of R&D activities focused in its Melbourne laboratories. The new California-based operation of EvoGenix will provide links into the key US biotechnology sector through the involvement of existing Absalus personnel, including that company's four founders, in accessing and developing new antibody products.
"This merger was a logical business step for both EvoGenix and Absalus," said Dr Merilyn Sleigh, chief executive officer and managing director of EvoGenix.
"EvoGenix and Absalus have been working together for the past year. It became apparent as our strategic alliance got under way that combining our capabilities would create a stronger company better positioned to achieve our business objectives."
EvoGenix and Absalus signed a strategic alliance agreement in May 2004 to develop new products in the rapidly expanding area of antibody therapeutics. Antibodies make up the fastest growing sector for new human therapies, with current antibody drugs attracting sales of over US$9 billion, growing by 20% each year. There are almost 20 approved therapeutic antibodies on the market, several already achieving blockbuster status and another 200 or so in clinical trials for diseases ranging from rheumatoid arthritis to cancer and viral infections.
Dr Steffen Nock, current President of Absalus Inc, will continue to direct the US operations of the expanded EvoGenix, and will join the EvoGenix board. "A major benefit of the merger is the opportunity to further integrate our substantial technology platform focused on finding new potent and safe antibody drugs." he said. "We are already offering this technology to partners, through alliance and license arrangements, but it is also a powerful starting point for generating the new products that we are developing internally".
The integrated EvoGenix technology platform covers a key stage in development of new antibody drugs - converting an antibody initially made in mice to a "humanised" version that can be given safely to patients, but retains and improves upon the disease- fighting properties of the original drug. Products under development by EvoGenix target cancer and viral infections, areas where current treatments can provide little relief for patients.
EvoGenix chairman, Chris Harris, welcomed the merger as a major step forward for the company. He commented, "This move will result in a company which is unique in the Australian biotechnology market in providing broad access to the highly dynamic antibody therapeutics sector. With strengths in both technology and products, EvoGenix is well positioned as a global player in the antibody field".
About Absalus
Absalus was established in 2003 as a therapeutic antibody company with a novel technology for "humanising" antibodies from non-human sources. Humanised antibodies do not promote an immune response when they are given to patients, but retain the beneficial characteristics of the original antibodies. Absalus is applying its proprietary technology to the development of antibodies for the treatment of cancer and has identified several new product opportunities in this sector. Absalus is based in Mountain View, close to Stanford University in California.
About EvoGenix
EvoGenix is a privately-owned, venture capital-backed Australian biotechnology company established in 2001 to create superior protein products as potential human therapeutics. EvoGenix specialises in the rapid identification of proteins, particularly antibodies, with improved therapeutic activity, positioning products for success in the clinic and the market place. It uses proprietary laboratory processes to mutate active proteins and select mutants with enhanced activity (evolution in the test tube).
EvoGenix has applied its proprietary technology in collaborative projects with Genesis R&D Corporation (NZ), Domantis Limited (UK) and Viventia Biotech Inc (Canada) as well as developing an internal pipeline of products. It has recently penned a license to key technology with German antibody company Micromet AG.
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