Mosaic Biomedicals, Northern Biologics deal

Mosaic Biomedicals and Northern Biologics will merge into a single oncology company based in Canada. Both firms are portfolio companies of Versant Ventures (San Francisco, Calif.). The combined entity, which will be named Northern Biologics, expects to begin clinical studies this year of lead candidate MSC-1 to treat solid tumors. MSC-1, which came from Mosaic's pipeline, is a humanized antibody targeting leukemia inhibitory factor (LIF).

Versant also invested an undisclosed amount in an extension of Northern's series A round, and Celgene Corp. (NASDAQ:CELG, Summit, N.J.) exercised an option to acquire undisclosed rights to the MSC-1 program. Northern declined to discuss the specific terms but said the funds should support the company through clinical development of MSC-1. Versant was the sole investor in Northern's $10 million series A round in 2014...