Pfizer will acquire the privately held biopharma CovX as part of a strategy to strengthen its position in biologics, the company announced Dec. 18. CovX is focused on the development of preclinical oncology and metabolic drugs.

"With this deal, we are building on our recent announcement of a new Biotherapeutic and Bioinnovation Center based in California and led by Dr. Corey Goodman," CEO Jeffrey Kindler said in a statement. Pfizer announced it was establishing the research center in October with former Renovis CEO Goodman at the helm (¹ Also see "Pfizer Unveils New San Francisco-Based Biotech Center, R&D Leaders" - Pink Sheet, 4 October, 2007.).

The addition of CovX will give Pfizer a biotherapeutics technology platform that links therapeutic peptides to an antibody "scaffold." The peptide targets the disease while the antibody "scaffold" allows the peptide to remain in the body long enough to achieve therapeutic benefit, according to Pfizer. As a result, the technology allows half-life extension and bioavailability to support optimal dosing regimens for peptide therapeutics, the company added.

From this technology, CovX has generated three early-stage compounds, one in diabetes and two in oncology. The La Jolla, Calif.-based company will operate as a division of Pfizer's Biotherapeutic and Bioinnovation Center.

"CovX scientists will remain in place, which reflects our decision to partner differently and maximize the productivity of the research initiatives underway outside of our walls," Pfizer said. Terms of the deal were not disclosed.

Separately, Pfizer announced the same day that it has received antitrust clearance from U.S. and German authorities to acquire Coley Pharmaceutical Group. The company announced its intention to acquire Coley with the aim of strengthening its therapeutic vaccines pipeline and gaining control over the firm's Toll-like receptor patent estate in November (² Also see "Pfizer Strengthens Therapeutic Vaccine Position With Coley Purchase" - Pink Sheet, 16 November, 2007.).

Pfizer's tender offer of $8.00 per outstanding common stock is scheduled to expire Dec. 28.

-Jessica Merrill (j.merrill@elsevier.com)

Pfizer To Fold CovX Into Bioinnovation Unit

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