Friday, April 3, 2009

Dermatologic biotech Magen sold to PPD

By Mass High Tech staff

Magen BioSciences Inc., a Waltham-based biotech focused on developing technology to improve skin health and appearance, has been acquired for $14.5 million in cash by PPD Inc., a Wilmington, N.C.-based contract research firm.

Privately held Magen BioSciences holds an exclusive license for developing and commercializing dermatologic treatment compounds originally discovered by Eli Lilly & Co. The license will be transferred to PPD, per terms of the agreement. The buyout will give PPD an inroad into treating psoriasis, atopic dermatitis and acne, as well as the ability to test safety and efficacy of skin therapeutics.

Dermatologic treatments generally have a “more straightforward path to regulatory approval,” PPD CEO Fred Eshelman said in a press release.

The acquisition will transfer Magen’s former director of corporate development Sandra Luikenhuis to a role with PPD as executive director, dermatology. PPD officials said they expect the new buy will lose about $15.2 million in operational spending this year.

Also announced today, the Charles River Laboratories Inc. has bought the Piedmont Research Center, a business unit sold by PPD.

Magen was founded in 2006 by scientists and investors to focus on dermatology, according to company officials. Its local venture backers include IDG Ventures (now Flybridge Capital Partners) of Boston, Highland Capital Partners of Lexington, and TVM Capital, which has offices in Boston and Germany.