Ariad Pharmaceuticals has announced that it will merge with its 80 percent-owned subsidiary Ariad Gene Therapeutics (AGTI).

"Based on our evaluation, we believe that this is an appropriate time to combine the companies and that this agreement is in the best interests of all parties," said Sandford D. Smith, vice chairman of the Ariad Board. According to the statement, Ariad gains potential future economic benefit from deforolimus and other assets previously owned by AGTI. Last year Merck signed a $1 billion deal with Ariad for deforolimus (AP23573), which is in late-stage trials for metastatic sarcomas.

- take a look at Ariad's release

Related Articles:
Ariad and Merck tie $1B knot over cancer therapy (July 2007)
Ariad cancer agent wins FDA's orphan drug status (Aug. 2005)