Faced with the fallout from a failed trial of its lead therapy, BioXell is following a familiar path taken by a lineup of European developers, agreeing to a buyout offer and joining forces with a stronger player. Italy's Cosmo Pharmaceuticals has struck a deal to buy BioXell for $41 million in cash, shares and options.
For a reasonable price Cosmo gets an early-stage antibody pain program and some cash reserves. Analysts note that the acquisition is patterned after a string of similar deals, including the tie-up between Evolva SA and Arpida and GPC Biotech's merger with Agennix. Trouble with a drug program these days can lead quickly to the deal table.
"Following disappointing phase IIb results with the company's lead compound Elocalcitol earlier this year, we conducted a comprehensive and careful review of all available strategic options," said Chairman Thomas Szucs in a statement. "We have concluded that the best available option for shareholders is for Bioxell to be acquired by Cosmo according to the proposed terms."
- here's the BioXell press release
- and check out the story from Bloomberg