Biogen in up to $250M bid for Conforma

US drugmaker Biogen Idec has entered into a definitive merger agreement with privately-held biopharmaceutical firm Conforma Therapeutics, based in San Diego, USA, which was founded in 1999 and is focused on the discovery and development of drugs that inhibit heat shock protein-90 (HSP90) molecules that are involved in protecting and supporting the growth of cancer cells across a range of tumor types. The news pushed Biogen Idec's share price up 2% to $46.83 on May 3.

Under the terms of the deal, Biogen Idec will acquire all the issued and outstanding shares of Conforma for $150.0 million, payable at closing, and up to an additional $100.0 million on the achievement of certain developmental milestones. The transaction, which has been cleared by both boards of directors, is still subject to shareholders' approval, but is expected to close in the second quarter of this year.

Explaining the rationale for the proposed acquisition, Biogen Idec's chief executive, James Mullen, said: "global leadership in oncology - from discovery to development to commercialization - is a major strategic objective for Biogen Idec. Conforma's platforms in the promising area of HSP90 antagonists provide significant opportunities to develop drugs for a range of solid tumors. Through this transaction, Biogen Idec will also broaden our therapeutic opportunities in the cancer field while adding Conforma's talented scientific team to our oncology group."