EntreMed acquires Miikana for $39.2M

EntreMed, a US clinical-stage drugmaker focused on cancer and inflammatory diseases, has entered into a definitive agreement to acquire all of the outstanding capital stock of Fremont, California-based privately-held oncology specialist Miikana Therapeutics.

As part of the deal, Entremed will exchange 9.96 million of its shares of common stock valued at approximately $21.2 million, based on the closing price on December 21, 2005, and may, in addition, pay up to $18.0 million upon the achievement of certain clinical and regulatory milestones to be made in cash or shares of stock at EntreMed's option. The acquisition does not require regulatory approvals and is expected to close in January 2006.

According to EntreMed, the deal will expand and complement its oncology franchise as Miikana's pipeline includes several alternative clinical and preclinical anticancer drug candidates.