Mega gene therapy firm
The merger of Megabios (Burlingham, CA) and GeneMedicine (The Woodlands, TX), announced at the end of October, will result in a combined firm more strategically positioned for partnerships, according to Megabios' CFO Bennet Weintraub; the companies, both leaders in the field of cationic lipid-based gene delivery systems, were independently seeking R&D partnerships. "It will be easier for us to attract partners together rather than alone," says Weintraub, explaining that there will be fewer gene-therapy companies focusing on lipid-based gene therapy. Under the terms of the deal, GeneMedicine shareholders will receive 0.571 of a Megabios share for each GeneMedicine share held, giving them an 11% premium. According to Weintraub, the as-yet-unnamed new company will hold "the vast majority" of intellectual property surrounding the use of cationic lipids in gene therapy, and will have seven products in the clinic, including a phase I/II trial of the CTFR gene to treat cystic fibrosis (a collaboration with GlaxoWellcome, London), and IL-2 and IL-12 therapies for various cancers (in development with Hoffmann-La Roche, Basel). — Adam Michael
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