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Renovis To Buy Assets Of Centaur Pharm For Up To $35M
By David P. Hamilton
11 December 2002
Dow Jones News Service (Copyright (c) 2002, Dow Jones & Company, Inc.)
Of THE WALL STREET JOURNAL
SOUTH SAN FRANCISCO, Calif. - (Dow Jones) - Renovis Inc. on Thursday announced that it has acquired the assets of Centaur Pharmaceuticals Inc. in a transaction valued at as much as $35 million, a significant deal for two closely held biotechnology firms specializing in neurological disorders. Shareholders of Centaur will receive $1.25 million in cash and an equity stake in Renovis of as much as 30%. In return, Renovis will obtain the rights to Centaur's existing experimental drugs, including a late-stage drug for the treatment of stroke victims. Much of the stock involved in the transaction, however, will be held in escrow pending various milestones, such as the initiation of late-stage human tests of the stroke drug by Centaur partner AstraZeneca PLC (AZN). Renovis will also obtain another drug candidate currently in mid-stage trials, which it will test against so-called neuropathic pain, additional compounds that have only been tested in animals, and Centaur's library of potential drug compounds. (This report and related background material will be available on The Wall Street Journal Web site, WSJ.com.) By providing Renovis with two drugs well along in development, the acquisition will speed the startup's transformation from a drug-discovery company to a full-fledged developer of new medications. That's particularly important these days, given the tough fund-raising environment for cash-hungry biotechs and the fact that Renovis, founded just two years ago, has no drug candidates in human trials yet. Although AstraZeneca holds worldwide rights to the stroke medication, Renovis stands to receive "double-digit" royalties if the drug receives regulatory approval, a company official said.
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