Cypress Bioscience has inked a deal to buy Proprius Pharmaceuticals in a deal that starts out at $37.5 million up front and goes up to $75 million if its gamble on new diagnostic technology pays off. Proprius has been developing diagnostic tools for rheumatoid arthritis. According to Cypress' release, "the nearest-term commercial opportunities include an early RA prediction technology, which helps to determine the likelihood of developing RA in patients with Undifferentiated Arthritis, and a methotrexate polyglutamates monitoring assay, which helps physicians to optimize MTX therapy by providing insights on an individual's metabolism of MTX, which can vary greatly from patient to patient." Michael Walsh, Proprius' founder, president and chief executive, is assuming the job of executive vice president and chief commercial officer of the expanded company.
"We believe that this combination will allow us to bring a unique offering of therapeutics and personalized medicine laboratory services to physicians, one that addresses important unmet medical needs in the treatment of both fibromyalgia and rheumatoid arthritis," said Jay D. Kranzler, MD, PhD, Chairman and CEO of Cypress.
- read the release
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