In an effort to boost its oncology pipeline, Biogen Idec will acquire Conforma Therapeutics for $150 mil. in a merger set to close in the second quarter, the companies announced May 3.

Conforma, which is exclusively involved in oncology treatments, has two compounds in Phase I development. The company focuses on development of therapies that inhibit heat shock protein 90 (HSP90) molecules, which work to support the growth of cancer cells.

On top of the $150 mil. initial payment, Conforma could receive an additional $100 mil. based on developmental milestones.

Biogen announced during an October 2005 earnings call that it had a $200 mil. "business development" investment plan for 2006 that would include expanding the pipeline to include small molecules in oncology (¹ Also see "Biogen Idec Business Development Plan Includes Small Molecules For Oncology" - Pink Sheet, 27 October, 2005.).

Conforma's rights for the anthracycline anticancer drug Amrubicin , licensed from Dainippon Sumitomo, will be transferred to a new start-up - Cabrellis Pharmaceuticals - prior to the close of the Biogen Idec merger.

In addition to oncology, where Biogen Idec currently markets Zevalin (ibritumomab) for non-Hodgkin's B-cell lymphoma and has several oncology projects in development, the firm is active in neurology and immunology. Biogen Idec also co-markets rheumatoid arthritis therapy Rituxan (rituximab) with Genentech.

-Jonathan Block

Biogen Idec Seeks Oncology Pipeline Boost Through Acquisition

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