Roche to buy Piramed
pharmafile | April 15, 2008 | News story | Sales and Marketing | MA, Piramed
Roche is set to pay $160 million (£315 million) to buy UK biotech company Piramed, a move which will further boost the company’s presence in oncology and inflammation therapies.
The privately owned biotech company based in Slough specialises in new drugs which target the PI3-kinase (PI3-K).
The PI3-K pathway is known to play an important role in disease progression and in resistance to chemotherapy in cancer cells. Pre-clinical studies have shown PI3-K plays a role in inhibiting a broad range of tumours such as breast and lung cancer, and could also be vital to treating inflammatory diseases such as rheumatoid arthritis.
Piramed’s lead product is a molecule in phase I to treat cancer (targeting P13-K alpha) and is already being co-developed by Roche subsidiary Genentech. A pre-clinical research programme aimed at developing an inflammation treatment to target PI3-K-delta will also be integrated into the Roche R&D portfolio.
“The integration of Piramed’s promising research and development reaffirms and further strengthens Roche’s leadership in oncology”, said William Burns, chief executive of Roche’s pharmaceuticals division.
“While innovative medicines have undoubtedly transformed cancer treatment, cancer remains a major cause of death and we are committed to investing in the development of new treatment options. In addition, this acquisition augments our research efforts in debilitating diseases such as rheumatoid arthritis,” he said.
As well as the $160 million price to acquire Piramed, Roche will also pay a $15 million milestone payment to the company when its lead product reaches phase II clinical trials.
The company was established just five years ago by three leading UK scientists, Professors Mike Waterfield, Peter Parker and Paul Workman, and venture capitalist, Dr Srinivas Akkaraju. The Company now boasts a strong and experienced management team and has been funded until now by a mixture of private equity investment and alliance revenues.
Michael Moore, chief executive of Piramed said: “Since Piramed was formed in 2003, we have struck a significant licensing deal with Genentech and advanced our highly promising first oncology product into the clinic. Today’s acquisition by Roche underlines the value of our pipeline and is a testament to the quality of the science developed by our team. With Roche’s undisputed excellence in oncology and inflammatory disease, Piramed has found a secure long term home for some world class science.”
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