SuperGen to buy Montigen Pharmaceuticals

US-based SuperGen plans to acquire oncology-focused drug discovery and development company Montigen Pharmaceuticals, headquartered in Salt Lake City, Utah.

SuperGen develops therapies for solid tumours, hematological malignancies and blood disorders and will pay Montigen stockholders $18.0m on the close of the transaction. It will also pay Montigen stockholders $22.0m in SuperGen shares on achievement of specific regulatory milestones.

Montigen's assets include a proprietary drug discovery technology platform and optimisation process, called CLIMB, and late-stage pre-clinical compounds targeting aurora-A kinase and members of the tyrosine kinase receptor family. One of the Montigen compounds is expected to be the subject of a pre-IND meeting later this year.

Completion of the acquisition will be subject to approval by Montigen stockholders and the relevant authorities. The transaction is expected to close in March 2006.

'The acquisition of Montigen is an exciting new chapter for SuperGen as we continue to expand our position in the oncology and hematology markets,' said James Manuso, SuperGen's president and ceo. 'We believe this acquisition will add force to our internal pre-clinical development efforts and will complement our ongoing in-licensing efforts focused on later stage compounds.'

Montigen has late-stage compounds in its pre-clinical portfolio, including inhibitors of aurora-A kinase and products that target the tyrosine kinase receptor family. These compounds have shown pre-clinical activity in solid tumours of several cancer types including breast, colorectal, ovarian, pancreatic and prostate.

Montigen co-founder Dr Bearss will join the SuperGen management team as vice-president, chief scientist, along with his 12-strong r&d team. Montigen's existing facilities in Salt Lake City, Utah will be taken over by SuperGen.