Clinical Data buys Adenosine Thera

Clinical Data has announced the acquisition of fellow USA-based Adenosine Therapeutics, a developer of drug products based on its extensive portfolio of composition of matter and method of use patents relating to selective adenosine receptor modulators. In exchange for all of the company's operating assets, Clinical Data paid $11.0 million in cash, and has entered into a $22.0 million, five-year promissory note and a separate $3.2 million, 32-month note. Contingent consideration of up to $30.0 million in cash may be paid on achievement of certain regulatory and commercial milestones.

The acquisition of Adenosine significantly expands Clinical Data's PGxHealth Division's pipeline of therapeutics, adding drug candidates in cardiology, diabetes, inflammatory diseases and sickle cell anemia. The acquisition further enhances PGxHealth's pipeline with Stedivaze (apadenoson), which is expected to enter Phase III testing in 2009 as a pharmacologic stress agent for myocardial perfusion imaging. Sales of the leading adenosine product used as a pharmacologic stress agent totaled about $330.0 million in 2007. Stedivaze has exhibited potential best-in-class attributes, the firm said.

Acquisition broadens portfolio