Hyperion to acquire Clal's diabetes unit
Hyperion Therapeutics Inc. (NASDAQ:HPTX) will acquire the Andromeda Biotech Ltd. diabetes subsidiary of Clal Biotechnology Industries Ltd. (Tel Aviv:CBI) in a cash and stock deal. Clal will receive an upfront payment of $12.5 million in cash and 312,869 Hyperion shares, valued at $8 million based on Hyperion's close of $25.61 on Wednesday, before the deal was announced. Clal is also eligible for up to $550 million in milestones, plus 10-25% royalties on DiaPep277 sales.
DiaPep277 is in Phase III testing for new onset Type I diabetes, an Orphan indication with about 35,000 adults diagnosed annually in the U.S. and Europe. Data are expected in 1Q15. In February, Andromeda paid Teva Pharmaceutical Industries Ltd. (NYSE:TEVA) about $72 million to reacquire exclusive, worldwide rights to commercialize the peptide comprising 24 amino acids derived from the sequence of heat shock protein 60 (Hsp60). Andromeda has rights to DiaPep277 from DeveloGen AG, which Evotec AG (Xetra:EVT) acquired (see BioCentury Extra, Feb. 24). ...