Cell Genesys to buy Calydon for $20 mill

Cell Genesys has entered into a definitive agreement to acquire Calydon,a private US biotechnology company located in Sunnyvale, California, which focuses on developing therapeutic products for cancer. Under the conditions of the deal, Calydon's shareholders will receive approximately 935,000 shares of Cell Genesys stock valued at around $17.4 million, while the latter will also assume Calydon's liabilities of some $2.6 million. The transaction is expected to close within a month.

Should have three drugs in Ph III next year

Explaining the rationale behind the deal, Cell Genesys' chief executive, Stephen Sherwin, said that his firm has been impressed by the clinical data already demonstrated for CV706, Calydon's lead product candidate for early-stage prostate cancer. He added that Calydon's products are "highly complementary" to the firm's present portfolio and, given the progress through the clinic of Cell Genesys' GVAX prostate and lung cancer vaccines, the addition of CV706 could "provide us with as many as three products entering Phase III trials by the end of 2002."