YM BioSciences inks deal to acquire Cytopia
Canada's YM BioSciences (YMI) is taking over Australia's Cytopia (CYTX), combining their cancer drug programs into a single pipeline in a $14 million merger deal. Every 11.73 shares of Cytopia will fetch one share of YM BioSciences, which values the Australian developer's shares at 16 cents, a 58 percent premium.
If all goes according to plan, Cytopia's shareholders will wind up with 11 percent of the shares of YM BioSciences and Cytopia chairman Bob Watson will join the YM board. The combined developer will have a total of four drugs in the clinic. Cytopia's lead product, CYT997, has wrapped early stage development, where it demonstrated "potent disruption of existing tumor vasculature." It's now in a Phase II trial.
"After assessing numerous global in-licensing opportunities, we determined that Cytopia's products were an ideal complement to our current portfolio," said David Allan, the CEO of YM BioSciences. "While the continued development of our lead product nimotuzumab remains our highest priority, we believe the timing is appropriate to expand our pipeline, consistent with our business model, leveraging our existing resources and expertise to select from the opportunities offered to us in order to continue to enhance the value of YM."