Receive instant alerts when news is published about your stocks. Claim your one week free trial for StreetInsider Premium here.
Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today announced that the company has entered into a definitive agreement under which Vertex will acquire ViaCyte, a private biotechnology company focused on providing novel stem cell-derived cell replacement therapies as a functional treatment. type 1 diabetes (T1D), for $320 million in cash.
“VX-880 has successfully demonstrated clinical proof-of-concept in T1D, and the acquisition of ViaCyte will accelerate our goal of transforming and even curing T1D by expanding our capabilities and bringing tools, technologies and assets additions to our current stem cell programs. said Reshma Kewalramani, MD, Chief Executive Officer and President of Vertex.
Vertex’s VX-880, an allogeneic, fully differentiated, insulin-producing stem cell-derived investigational cell therapy for T1D, has already achieved proof of concept with very promising safety and efficacy results from a ongoing phase 1/2 study recruiting and dosing patients. The acquisition of ViaCyte provides Vertex with complementary assets, capabilities and technologies, including additional human stem cell lines, intellectual property around stem cell differentiation and Good Manufacturing Practices (GMP) manufacturing facilities ) for cell therapies that could accelerate Vertex’s ongoing T1D programs. The acquisition also provides access to new hypoimmune stem cell assets through the ViaCyte collaboration with CRISPR Therapeutics.
“ViaCyte’s commitment to finding a functional cure for T1D is shared by Vertex, and this acquisition will enable Vertex to deploy ViaCyte’s tools, technologies and assets for the development of Vertex’s multiple cell replacement therapy approaches. designed to reduce the burden of millions of people living with T1D around the world,” said Michael Yang, President and CEO of ViaCyte.
Terms of trade
Under the terms of the acquisition, Vertex will acquire ViaCyte for $320 million in cash. Vertex expects the acquisition to close later this year, subject to certain conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary conditions.
ViaCyte is a private cell therapy company with a clinical-stage stem cell platform that delivers therapeutic proteins to restore people’s health. The company has significant clinical experience in patients with T1D; this includes a first-in-class, immunocompromised, immunoevasive, experimental insular cell replacement therapy that could potentially eliminate the need for exogenous insulin without requiring immunosuppression. ViaCyte has received research support from JDRF and the California Institute of Regenerative Medicine and has established collaborative partnerships with leading companies, including CRISPR Therapeutics, to advance its therapies for T1D.