Tuesday, August 5, 2008

Clinical Data deals a potential $66M for Adenosine

By Mass High Tech Staff

Biotechnology company Clinical Data Inc. reports it has made a $66 million purchase for Adenosine Therapeutics LLC. a Virginia-based developer of drug products based on regulating adenosine receptors, to treat diseases like Type 2 diabetes, sickle cell anemia and asthma, among others.

Newton-based Clinical Data (Nasdaq: CLDA) paid $11 million in cash, and entered into a $22 million, five-year promissory note and a separate $3.2 million, 32-month promissory note, all as part of the deal for Adenosine, which could also receive up to $30 million more in cash on achievement of certain regulatory and commercial milestones.

According to Drew Fromkin, president and CEO of Clinical Data, the purchase expands Clinical Data’s PGxHealth Division with Adenosine Therapeutics’ portfolio of adenosine receptor agonists and antagonists, which could produce targeted therapeutics and accompanying biomarker tests.

Adenosine, founded in 1999, has two compounds in its pipeline that are the subject of licensing option agreements. Novartis acquired an option to partner on the development of ATL844, in preclinical study for the treatment of diabetes and asthma, as part of a $14 million third funding round for Adenosine in 2007. In addition, an unnamed partner holds an option on another compound in preclinical development for an ophthalmic indication.

In June, Clinical Data reported that the European Patent Office granted the firm’s German subsidiary a patent for a genetic biomarker linked to a gene responsible for blocking the absorption of anti-cancer drugs in tumor cells.

Clinical Data, which employs 459 workers, reported a 2008 net loss of $35.3 million on revenue of $34 million during its fiscal year ending March 31.