Cell Therapeutics completes SMi buy

USA-based Cell Therapeutics has completed the acquisition of Systems Medicine Inc (SMi), a privately-held oncology company also based in the USA, in a stock for stock merger valued at $20.0 million. SMi stockholders could also receive a maximum of $15.0 million in additional consideration on the achievement of certain regulatory milestones. The acquisition of SMi provides CT with worldwide rights to brostallicin, a DNA minor groove binding agent with proven anti-tumor activity. SMi will continue to operate as a wholly-owned subsidiary of CT.

Brostallicin, which was initially developed by Nerviano Medical Sciences, a pharmaceutical R&D facility in Italy, is a synthetic second-generation DNA minor groove binder with potent cancer killing activity in experimental tumors models. More than 200 patients have been treated with the compound in single-agent and combination studies, and it is now in a first-line Phase II trial that is currently being conducted by the European Organization for Research and Treatment of Cancer.