News of Celldex Therapeutics Inc. (NASDAQ:CLDX)
acquiring CuraGen Corp. (NASDAQ:CRGN) for $94.5 million not only highlights a dealmaking trend we're tracking but signifies the need for a broader consolidation that could literally save lives.
The acquisition of CuraGen will add a portfolio of oncology-focused, fully-owned antibodies to Celldex's precision-targeted immunotherapy platform. The portfolio includes treatments for breast cancer, melanoma and other afflictions. CuraGen president and CEO Timothy Shannon said the Branford, Conn., company had been considering a
range of strategic alternatives since February. CuraGen cited a difficult external financing environment.
That rough environment is also squeezing a lot of biotech startups that could fold or cut back on research. With that happening, potential life-saving drugs may never make it to market. A BusinessWeek article
delves into that notion.
BW also noted that on Friday some struggling biotechs are showcasing themselves in hopes of securing some much needed financing. That's happening in Orlando, Fla., at the American Society of Clinical Oncology, or ASCO, where some 30,000 oncologists, scientists, stock analysts and venture capitalists are expected to attend.
It's
not just small and middle-market players getting into the act. Just last week, following similar deals by Switzerland's Novartis AG and Japan's biggest drug company, Takeda Pharmaceutical Co. Ltd., Johnson & Johnson (NYSE:JNJ) said it's acquiring Cougar Biotechnology Inc. (NASDAQ:CGRB), a development-stage biopharmaceutical company with a specific focus on oncology, for about $970 million in cash.
And more recently, biotech firm Exelixis Inc. sold the rights to
early-stage cancer drugs to Paris' Sanofi-Aventis SA (NYSE:SNY) in a deal that could be worth more than $1 billion. -
Baz HiralalSee the BusinessWeek storyCelldex buys CuraGenOncology M&A trend
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