MGI to acquire Aesgen, Zycos
Under three deals, MOGN is acquiring two cancer companies and a cancer compound under FDA review. MOGN will acquire Aesgen (Princeton, N.J.) and Zycos (Lexington, Mass.) for $32 million and $50 million in cash, bringing to MOGN three clinical cancer compounds: Aesgen's Saforis oral formulation of L-glutamine, which is in Phase III testing to treat oral mucositis in chemotherapy patients; Zycos' ZYC101a, a DNA-based HPV vaccine that is in Phase II testing to treat high-grade cervical dysplasia; and Zycos' ZYC300 encapsulated plasmid encoding a tumor antigen, which is in Phase I/IIa testing for metastatic hematological and solid tumors.
Aesgen shareholders are eligible for $58 million in regulatory and sales milestones, plus a 5% royalty. MOGN plans to start a second Phase III trial of Saforis early next year. Also in early 2005, MOGN expects to begin Phase III testing of ZYC101a. Banc of America advised MOGN on the Aesgen deal, and UBS advised MOGN on the Zycos deal. Advisers to Aesgen and Zycos were UBS and SG Cowen, respectively. ...