Targacept and Catalyst sign $100 million deal
pharmafile | March 9, 2015 | News story | Research and Development, Sales and Marketing | CB 813d, PF-05280602, Targecept, blood disorder, catalyst biosciences
Targacept and Catalyst Biosciences have signed a merger agreement which will see them develop new treatment options for patients with bleeding disorders.
The transaction enables Catalyst to initially own approximately 65% of the joint company in a deal worth around $100 million that sees their operations combine.
Together the union will aim to develop treatments such as PF-05280602, an engineered Factor VIIa (FVIIa) drug candidate to control bleeding episodes and to potentially achieve effective prophylaxis in haemophilia inhibitor patients.
Additional drug candidates being developed in the partnership include an improved Factor IX (FIX) for haemophilia B, plus a planned Factor Xa (FXa) that can potentially be used for both haemophilia and the control of bleeding in non-haemophilia patients.
“The proposed transaction employs an innovative structure that is designed to optimise stockholder value for both Catalyst and Targacept. Substantial capital is committed to the combined entity, potential additional capital is earmarked for future investment into the combined company if the notes are converted, and a special dividend is provided for existing Targacept stockholders at the closing,” comments Dr Stephen Hill, who is the president and chief executive of Targacept.
The North Carolina-based Targacept – renamed Catalyst Biosciences through the merger agreement – lost 46% of its workforce in 2012 after suffering pipeline difficulties and disappointing results.
Four Phase III clinical trial failures for depression drug TC-5214 led its developers AstraZeneca to end any ties with the firm. Moreover, Targacept reported a net loss of $4.9 million for the third quarter of 2014.
This merger will distil confidence in the company whose cash remaining in the combined business would be $35 million, along with an anticipated $5 million from Catalyst.
The firms’ PF-05280602 – formerly CB 813d – drug will be a key treatment going forward for the new entity. The candidate is developed by Pfizer and successfully completed a Phase I clinical trial, it has been developed to compete in the $1.5 billion haemophilia market.
Haemophilia is a rare and serious bleeding disorder that results from a genetic or an acquired deficiency of a protein required for normal blood coagulation. The condition affects approximately 300,000 patients worldwide according to the National Haemophilia Foundation.
Patients suffer from spontaneous bleeding episodes that often occur in the knees, ankles and elbows. This internal bleeding can lead to joints, organs, and tissue damage over time.
Tom Robinson
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