Celgene expanded its autoimmune disease pipeline with a new acquisition.
The company is buying a biotechnology company based in Cambridge, Massachusetts called Delinia, which is working on drugs to treat an array of autoimmune diseases.
Here’s how this deal breaks down.
Celgene will make an initial payment of $300 million to gain access to Delinia’s first experimental drug called DEL106 as well as other second generation programs.
The current crop of drugs prescribed to treat autoimmune diseases broadly suppress the immune system, but can make the body vulnerable to serious infections, according to Xconomy.
DEL106 is being designed to target a specific receptor on regulatory T-cells (Tregs) that focus on regulating the body’s immune response. Changing the levels of Tregs in the body could potentially restore balance in the immune system safely and effectively treat diseases like Lupus and rheumatoid arthritis.
“We are delighted to enter into this transaction with Celgene,” said Saurabh Saha, M.D., Ph.D., the chief executive officer at Delinia in a statement. “Their expanding Inflammation and Immunology franchise and strong commitment to scientific innovation makes them an ideal company to continue to move DEL106 forward.”
Part of this acquisition entails having Celgene progress DEL106 into the clinical phase next year. Delinia’s shareholders could be eligible to receive an additional $475 million if the drug hits certain development, regulatory, and commercial milestones throughout the process.
This deal is expected close in the first quarter of this year.