SuperGen to buy Montigen for $18 M

USA-based drugmaker SuperGen says it has entered into a definitive agreement to acquire fellow US company Montigen Pharmaceuticals. The latter's assets include its R&D team, its proprietary drug discovery platform and optimization system, Climb, and several late-stage pipeline products, including several tyrosine kinase targeting drugs which have shown preclinical efficacy against various types of cancer.

Under the terms of the deal, SuperGen will pay Montigen stockholders a total of $18.0 million, half in cash and half in shares. The Dublin, California-headquartered firm has also agreed to pay a further $22.0 million, contingent on the achievement of specific regulatory milestones. The deal is still to be approved by Montigen stockholders, customary closing conditions and the issuance of a permit from the state of California. SuperGen adds that the acquisition is expected to complete in March this year.

Montigen's co-founder, David Bearss, will join the SuperGen management team as vice president at the close of the deal. Dr Bearss, in collaboration with his 12-person R&D team, will initially concentrate on the take over of Montigen's existing facilities in Salt Lake City, Utah.