12:00 AM
 | 
Feb 17, 2003
 |  BioCentury  |  Strategy

Varnishing up a bargain basement deal

Although Cell Pathways Inc. fell off Wall Street's radar following a 2000 non-approvable letter for Aptosyn exisulind to treat the precancerous condition familial adenomatous polyposis (FAP), the company remained on the watch-and-wait list of cancer play OSI Pharmaceuticals Inc.
More than two years later, OSIP is acquiring CLPA for about $33 million in stock, which it suggests may be a pittance compared to hidden value in CLPA's CP461 cancer compound.
Both Aptosyn and the second-generation compound CP461 inhibit cGMP phosphodiesterase 1, 2 and 5. This inhibition causes elevated cGMP levels and sustained activation of protein kinase G, which directly phosphorylates MEKK1. In turn, MEKK1 activates the N-terminal cJun kinase (JNK-1) pathway, which is involved in apoptosis signaling.
"Aptosyn had a crash and burn - it was thought to work via a different mechanism," said OSIP CEO Colin Goddard. "Perhaps as a result, the management team at Cell Pathways has struggled to raise money. Sometimes it's hard to look past a tarnished image and find a...

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