Somatix Therapy Corp. Acquires Merlin Pharmaceutical Corp.'s Gene Therapy Programs

Strategic Insights -

Somatix Therapy Corp., a leader in gene therapy, has completed the acquisition of Merlin Pharmaceutical Corp.'s in vivo gene therapy programs and related intellectual property. The acquisition includes Merlin's adenoviral and adeno-associated viral vector technologies, which complement Somatix's proprietary retroviral vector technology. This strategic move positions Somatix to explore in vivo genetic modification in addition to its existing ex vivo capabilities. The acquired technology enables the genetic modification of non-dividing and dividing cells, as well as the transfer of sizable genes of interest with predictable insertion points.

Key Takeaways:

  • Somatix acquires Merlin Pharmaceutical Corp.'s in vivo gene therapy programs and related intellectual property for 3 million shares of common stock to be issued over 24 months.
  • One quarter of the shares will be released to Merlin shareholders at periods of 6, 12, 18, and 24 months after the closing, while 50 percent of the shares will be escrowed for 18 months.
  • Somatix has signed exclusive long-term consulting arrangements with Merlin's founding scientists, including Dr. Richard Samulski, Dr. Thomas Shenk, and Dr. Matthew During.
  • The acquired technology includes adenoviral and adeno-associated viral vector systems, which complement Somatix's proprietary retroviral vector technology.
  • The company will continue to develop Merlin's AAV-based product for the treatment of Parkinson's disease in parallel with its own ex vivo method.
  • Somatix currently has clinical and preclinical programs in oncology, neural diseases, and hemophilia, using its proprietary retroviral vector gene transfer technology.
  • The company's lead product, GVAX cancer vaccine, is being tested in Phase I clinical trials for the treatment of metastatic renal cell carcinoma and advanced melanoma.

Statistics:

  • 1994: Merlin Pharmaceutical Corp. announced a definitive merger agreement with Somatix Therapy Corp.
  • 1995: Somatix completes the acquisition of Merlin Pharmaceutical Corp.'s in vivo gene therapy programs and related intellectual property.
  • 24 months: Timeframe for the issuance of 3 million shares of common stock by Somatix to Merlin shareholders.
  • 6, 12, 18, and 24 months: Periods at which one quarter of the shares will be released to Merlin shareholders.
  • 18 months: Duration of the escrow period for 50 percent of the shares.

Sources:

  • BUSINESS WIRE - Feb. 14, 1995
  • Somatix Therapy Corp.'s announcement