Alert: NTMD +50% next EPOX DVAX
GlaxoSmithKline Archemix (NTMD) in deal worth up to $1.4 bln for drugs for inflammatory diseases
NTMD/Archemix is the same company
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On November 18, 2008, Archemix announced that it had entered into a merger agreement with NitroMed, Inc., (NASDAQ: NTMD) pursuant to which Archemix has agreed to merge with NitroMed in an all-share transaction. The merger is subject to approval by Archemix's and NitroMed's shareholders, consummation of the sale of NitroMed's BiDil and BiDil XR drug business and other customary closing conditions. As a result of the $27.5 million in upfront payments received by Archemix from GSK, Archemix now estimates that cash and cash equivalents for the combined company at the closing of the merger will be approximately $78-88 million.
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HERE IS TODAYS MEGA BUSTER NEWS
GlaxoSmithKline working with Archemix
Tuesday December 23, 6:55 am ET
LONDON (AP) -- GlaxoSmithKline PLC and Archemix Corp. said Tuesday they will work together to develop drugs for inflammatory diseases in a deal that could be worth as much as $1.4 billion.
The pharmaceutical companies said they will be studying aptamers, which bind to disease-causing proteins to stop them from having an effect.
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They hope to develop as many as seven new drugs to treat inflammatory diseases like rheumatoid arthritis and inflammatory bowel disease, the companies said in a joint press release.
Massachusetts-based Archemix will do the research into the potential new drugs, starting with $27.5 million in upfront payments from London-based GlaxoSmithKline. Archemix will then be eligible to receive up to $200 million in development, regulatory and sales milestone payments for each of the seven drugs that could be developed -- making the deal potentially worth more than $1.4 billion, according to the statement.
If the drugs make it to the sales stage, Archemix would also receive royalties "up to lower double digits" on worldwide sales, the release said.
Archemix Chief Executive Errol DeSouza told the Associated Press that it was too early to comment on the likely timeframe for the deal, but that it was already at the clinical trial stage with several other aptamer drugs.
"We're excited about working with GlaxoSmithKline...to find where aptamers could offer novel options to treat disease," said DeSouza.
Glaxo shares were down 0.29 percent at 1,224 pence in morning trading on the London Stock Exchange.
