Wednesday, February 20, 2008

Acceleron's Celgene deal worth almost $2B

Acceleron Pharma Inc. has struck a pair of deals with pharmaceutical firm Celgene Corp. that could bring nearly $1.9 billion in payments to Acceleron, the biotech reports.

The two life sciences firms have agreed to jointly develop and market Acceleron's lead bone-forming protein, called ACE-011, now in Phase 1 clinical trials. And Celgene has optioned three of Acceleron's discovery-stage programs in a separate agreement.

In the deal related to ACE-011, Celgene has agreed to pay an initial fee of $50 million to Acceleron and to make a $5 million equity investment in the privately held biotech based in Cambridge. Both companies would share costs to develop Acceleron's bone-forming agents, and Acceleron is eligible for $510 million in milestone payments as well as royalties on potential sales of the proteins. Celgene, based in Summit, N.J., would also buy at least $7 million in Acceleron common stock if the biotech has an initial public offering. The deal is subject to standard closing conditions.

Acceleron could also receive up to $1.3 billion in payments from Celgene in connection with the development of the three discovery-stage programs focused on cancer and cancer-related bone loss. The biotech would also receive royalties from Celgene on potential sales of the drugs.

Acceleron said it expects to begin a Phase 2 clinical trial of ACE-011 by mid-2008 in patients who have suffered bone loss due to a blood cancer called multiple myeloma.

Founded in 2003, Acceleron reports it employs 90 workers and has raised a total of $86 million in three rounds of venture capital financing. In addition to its treatments for bone loss, the biotech is developing preclinical proteins intended to increase muscle mass, control the growth of blood vessels, and block the accumulation of fat.