Wednesday, July 25, 2007

Cell Therapeutics to Nab Systems Medicine for $20M

Biopharmaceutical company Cell Therapeutics Inc. announced Wednesday that it has agreed to acquire fellow pharmaceutical firm Systems Medicine Inc. in a stock-for-stock merger valued at $20 million. CTI said SMi stockholders might also receive up to $15 million in additional consideration—payable in cash or shares of CTI common stock—should certain regulatory milestones be met. Under the terms of the agreement, CTI said SMi, which specializes in oncology- or cancer-related medicines, will operate as a wholly owned subsidiary. As part of the deal, CTI said it gains worldwide rights to Brostallicin, a DNA minor groove-binding agent with proven anti-tumor activity and a favorable safety profile. Brostallicin is currently in Phase II clinical studies, CTI added. Cell Therapeutics Inc. is headquartered in Seattle.