Five months ago, Delinia was just a fledgling autoimmune startup with just four full-time staff. However, the story is now totally different because Celgene Corporation (NASDAQ:CELG) is planning to acquire it. The Summit, New Jersey-based company will be spending $300 million, being an upfront cost of the buyout, and thereafter top up another $475 million, but in milestone-based payments.
The new development will also enable Celgene Corporation (NASDAQ:CELG) to gain Delinia’s lead program, DEL106 alongside any other related second generation programs. This will cost another $300 million, but the company seems ready to move forward.
Rupert Vessey, president of research and early development at Celgene says, “Delinia is at the forefront of advancing new approaches to treating patients with severe and debilitating autoimmune diseases. We look forward to progressing DEL106 into the clinic next year.”
Delinia’s Focus Is On The Development Of Targeted Regulatory T-cell (Treg) Therapies
The company has technologies which are cutting edge. With these technologies, Delinia is optimistic about being able to re-establish balance to the immune system through targeting, activating and augmenting Treg levels. Delinia’s research facilities are located in San Francisco. Its protein therapeutic platform is a result of efforts from its co-founder and chief scientific officer, Jeffrey Greve.
Bruce Booth, a partner with Atlas Ventures speaks highly of Celgene, citing that its pipeline is extremely resourceful in terms of therapies the likes of mongersen and ozanimod. At the same time, its programs match with its growing portfolio. Other I&I drugs in development include CC-220, which is an immunomodulatory, and CC-90001, an anti-fibrotic.
Delinia Is The First Exit From Atlas Venture Fund X
The company’s creation was triggered by increasingly innovative and cutting-edge science. Booth says that Delinia may have sought independence but it has had a good story of a great biotech investment. Hopefully, its new corporate partner/acquirer will take it to the next level.
In the meantime, Celgene Corporation (NASDAQ:CELG)’s stock closed at $111.53 yesterday, a decline of $2.45 or 2.15%.
Note: This article is written by Adam Russell and was originally published at Market Exclusive.