Clinical Data sells Avalon assets for $1.5M to Intrexon

By Mass High Tech staff

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Clinical Data Inc. has shed some assets — those associated with its Avalon Pharmaceuticals acquisition — in a $1.5 million cash deal to Intrexon Corp. The sale reiterates Newton-based Clinical Data’s intentions to focus on late-stage drug development.

The sale includes the Avalon Pharmaceuticals property and equipment from its Germantown, Md., site. It does not, however, include the intellectual property associated with Avalon, including the AvalonRX biomarker discovery platform and a cancer drug treatment aimed at beta-catenin. While Intrexon will adopt the lease on the Germantown facility, Clinical Data will sublet a portion of the lab space used as part of its oncology program.

Clinical Data (Nasdaq: CLDA) officials expect to save $4 million to $5 million annually from the sale of those assets. The company will continue to pursue developments in late-stage drug treatments for cardiovascular and central nervous system diseases, as well as inflammatory and oncology treatments.

Earlier this year, Clinical Data shed other assets, selling its Cogenics division to Caifornia-based Beckman Coulter Inc. for about $17 million. At the time, the company said the sale was a key part of its plan to sell off noncore assets and focus on advancing the company’s two late-stage targeted therapeutic programs.

Intrexon is based at the Virginia Tech Corporate Research Center in Blacksburg, Va., and it maintains business and research facilities in Germantown, Md.; San Francisco; and Valley Forge, Pa.

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