Ilex Has 16 Products For Internal Development After Convergence Acquisition
Executive Summary
Ilex Oncology is adding seven compounds to its pipeline with the acquisition of Boston-based Convergence Pharmaceuticals.
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Ilex Oncology is adding seven compounds to its pipeline with the acquisition of Boston-based Convergence Pharmaceuticals. Ilex, which is subdivided into a third-party drug development business (Ilex Services) and a firm with its own drug portfolio (Ilex Products), currently has eight products in the clinic. In addition, a tumor honing peptide linked to doxorubicin is in preclinical development. The BLA for Ilex' most advanced product, Campath, will be completed in 1999. Two Convergence compounds will reach the clinic within a year, Ilex predicted. The orally active anti-angiogenic small molecule NM-3 could enter the clinic in six months. One of Convergence's six protein fragments will be chosen for the second development project. Ilex is also gaining an intellectual property stable of 16 patents and patent applications. Convergence has touted the potency of its anti-angiogenic protein compounds and their reproducibility in yeast. Two of its six proteins are also reproducible in E. coli, the company said. Ilex said it does not currently have any third party contracts to develop anti-angiogenic compounds which would compete with the Convergence pipeline. Convergence will be fully integrated into Ilex' drug development company. CEO Glenn Rice, PhD, will become VP-research at Ilex and serve on the board. In addition to buying Convergence to enhance its own pipeline, Ilex has been growing its CRO arm, acquiring 100% of PFK-Ilex in the U.K. (1 (Also see "Ilex Strengthens European CRO Presence Via U.K. Acquisition" - Pink Sheet, 12 Jul, 1999.)). Ilex completed a $20 mil. private placement concurrently with the Convergence purchase. A recent development agreement blurred boundaries between Ilex' CRO and products arms: Ilex is sharing risk in Lilly's LY295501 project in exchange for an equity investment (2 (Also see "Ilex/Lilly Development Agreement Grows Out Of CRO Contract For Cancer Drug" - Pink Sheet, 1 Mar, 1999.)). Ilex acquired Convergence for $10 mil. in stock and assumption of $1 mil. of debt. The agreement also provides for an earn-out of up to 1 mil. shares based on milestones of the first Convergence compound entering Phase I and then Phase II. |