As this Deal Pipeline timeline shows (subscription required), Maxygen retained Lazard to explore strategic alternatives, including a possible sale, in October and has since slashed staff and delayed late-stage development of one of its most promising drugs. The deal with Astella will keep the research -- and Maxygen -- alive.  

Maxygen, which develops proteins using its proprietary DNA shuffling technology, will contribute nearly all of its R&D and assets to the venture, taking an 83% stake. Astellas will be granted an option to acquire Maxygen's stake at specified exercise prices over three years. Each company is contributing an initial $10 million, but Astellas has agreed to fund nearly all operating costs, estimated at about $30 million for the first three years. Maxygen will continue as an independent company, but with limited operations.  

The venture expands Astellas' pipeline and comes three months after its $1.1 billion hostile offer to acquire CV Therapeutics Inc. was trumped by Gilead Sciences Inc. (NASDAQ:GILD). - Suzanne Stevens