SuperGen and Astex Therapeutics announce merger plans Print E-mail
By Staff and Wire Reports   
Thursday, 07 April 2011 06:56
SuperGen, Inc. (NASDAQ: SUPG), a pharmaceutical company dedicated to the discovery and development of cancer therapies which was founded on March 6, 1991, with a mission to improve the quality and ultimately, save the lives of people afflicted with life-threatening diseases, especially cancer has announced along with Astex Therapeutics Limited, a privately held, U.K.-based biotechnology company developing targeted therapies for oncology and virology that they have agreed to merge the two companies subject to shareholder approvals.

The company, in a press release said that they plan to call the combined entity, Astex Pharmaceuticals, Inc and that it is expected to trade on the NASDAQ under the symbol ASTX.

The move is expected is expected to create a development and commercialization firm with $120 million in cash and cash equivalents forecasted post deal closure.  The group's combined company’s clinical pipeline will include seven drugs in development – four of which are currently in or entering into Phase II clinical trials and three of which are currently partnered with large pharmaceutical companies. 

SuperGen's Cancer Pipeline Includes                             
Orathecin Solid Tumors  Phase III
Orathecin with Gemcitabine Pancreatic Cancer (Advanced Pancreatic Cancer) Phase III
MP470 Solid Tumors Phase I
MP470 with Chemotherapy Lung Cancer  Phase I
SGI110 Cancer  Phase I

 

 

 

 

 

The combined company expects to have:

  • Top-tier partnerships including current partnerships with GlaxoSmithKline, Eisai, Johnson & Johnson, Novartis and AstraZeneca
  • Nearly $2 billion in potential future milestone revenues, plus royalties
  • An industry leading drug discovery platform to sustain future value creation
  • Integrated operations based in two of the world’s leading biotech clusters, in the United States and the United Kingdom.


Pursuant to the terms of the agreements, SuperGen plans to purchase Astex Therapeutics Limited, paying Astex shareholders $25 million in cash, plus shares in SuperGen common stock representing 35 percent of the total post closing shares outstanding.  Subsequently, SuperGen plans to pay deferred consideration in the amount of $30 million, to be paid in stock or cash at the discretion of the combined entity, over a period of 30 months. The combined entity will assume all outstanding incentive stock options of Astex Therapeutics Limited.  Completion of the transaction will be subject to approval by the shareholders of each company, customary closing conditions, and U.S. and U.K. regulatory review and clearance.  The proposed transaction is expected to close in July 2011.




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