LeukoSite To Acquire CytoMed
LeukoSite, Inc. has signed a definitive agreement to acquire CytoMed, Inc. (Cambridge, MA). The acquisition is expected to provide LeukoSite with approximately $15 million in cash and committed cash payments and two compounds in clinical trials. The acquisition, which has been approved by both companies' boards of directors, is expected to close during February, subject to customary closing conditions including approval by the stockholders of CytoMed.
Under the terms of the agreement, LeukoSite will issue approximately 1.6 million shares of preferred stock to CytoMed stockholders priced at $11.88 per share at two points over the next ten months. In addition, CytoMed shareholders may receive up to $23.5 million in cash and 84,000 shares of LeukoSite stock for the achievement of clinical development and regulatory milestones related to the CytoMed products.
"The two CytoMed compounds, which target asthma and skin inflammatory diseases, broaden our clinical pipeline," said Dr. Christopher Mirabelli, chairman and CEO of LeukoSite. CMI-977 and CMI-392 will join three LeukoSite monoclonal antibodies in clinical development, including Campath in clinical studies in patients with refractory chronic lymphocytic leukemia; LDP-02 in Phase II studies in patients with inflammatory bowel disease; and LDP-01 in Phase I/IIa trials in kidney transplant and stroke patients.
CMI-977 is an orally active compound that selectively inhibits the production of leukotrienes, a class of molecules that play an important role in triggering bronchial asthma. In 1999 LeukoSite plans to begin a Phase IIa clinical trial of CMI-977 in asthma to assess its safety, tolerability and biological activity.
CMI-392 is formulated as a topical product designed to block two biochemical pathways involving inflammation. The compound is currently undergoing initial Phase II studies in adults with psoriasis and children with atopic dermatitis. In addition LeukoSite will acquire CytoMed's complement inhibition research program.
For more information: LeukoSite, Inc., 215 First Street, Cambridge, MA 02142, USA. Telephone: 617-621-9350.