STOCKHOLM, Sweden, March 21, 2005 (PRIMEZONE) -- Biovitrum today announces that the company has agreed to acquire Cambridge Biotechnology Ltd ("CBT"), a Cambridge UK based private drug discovery company. Through this move, Biovitrum is developing its therapeutic area base, advancing and balancing the medical and commercial potential of the product portfolio, expanding the technology platform and strengthening its position as a leading European player.
CBT's drug discovery efforts have been focused on obesity, pain and inflammation, utilizing the company's top class scientific and technical skills in the field of cytokine receptors. Cambridge Biotechnology has been highly productive since its formation in 2001, with one compound, CBT 1008 for inflammatory pain, successfully through a phase I clinical trial and generating a pipeline of compounds including novel leptin agonists. The most advanced leptin agonist, for the treatment of obesity, is expected to enter phase I next year.
As a subsidiary of Biovitrum, Cambridge Biotechnology will continue to work as an autonomous, highly skilled and innovative R&D unit, based in Cambridge, UK.
"I am really excited about this acquisition. This kicks off our new R&D strategy, it expands our therapeutic area base and specifically gives us two advanced projects with substantial potential, of which one is already in clinical phase I," says Anders Ullman, SVP of R&D at Biovitrum.
"The acquisition of CBT is in line with our core business development strategy and of significant importance for Biovitrum," says Mats Pettersson, CEO of Biovitrum. "We get a direct connection into one of Europe's most interesting and dynamic biotech clusters."
Cambridge Biotechnology's CEO Tony Sedgwick said, "This is fantastic news for us and the Cambridge biotech cluster. Biovitrum is a very high calibre company with significant resources. The broad skill set of expertise at Biovitrum combined with our biology and pharmacology at CBT will be paramount to the successful commercialization of our products. The founders and investors are very pleased with this acquisition by one of Europe's most respected biotech companies."
Peter Richardson, CSO and new Managing Director of Cambridge Biotechnology in the UK said, "This is excellent news. Biovitrum has a great scientific track record and will complement our skills excellently."
The completion of this transaction is subject to a formal decision by a Shareholders Meeting in Biovitrum AB.
Gargoyle Partners LLP acted as financial advisor to Cambridge Biotechnology Ltd in this transaction.
About Biovitrum
Biovitrum is a privately held Swedish biotechnology company with its operations focused on the discovery and development of innovative drugs. Biovitrum is focused in a few therapeutic areas including metabolic diseases such as type 2 diabetes and obesity and specialty indications such as oncology and ophthalmology. The company has a number of potential new drugs in development internally and in strategic alliances with partners. Biovitrum also offers contract services and collaborations in process development and manufacturing of protein therapeutics, and markets a portfolio of products in the Nordic territory. For additional information, visit our website at; http://www.biovitrum.com.
Biovitrum AB, Lindhagensgatan 100, SE-112 76 Stockholm Tel: +46-8 697 20 00
About Cambridge Biotechnology Ltd
CBT is based in Cambridge, England and has 29 employees. The Company was formed in 2001 when a group of scientists from The University of Cambridge and Parke Davis/Pfizer Neuroscience Centre decided to create a small molecule drug company, targeting pain, obesity and inflammation. The vision of the company was to attract high calibre people and encourage true innovation. The company raised (Pounds)10.2 million from leading venture capitalists Avlar BioVentures, The Cambridge Gateway Fund, Johnson and Johnson Development Corporation, Northern Venture Managers and Merlin Biosciences. For additional information, visit our website at; http://www.camb-biotech.com.
About CBT1008 CBT1008 is one member of a novel (non cyclo-oxygenase mediated) class of non-steroidal anti-inflammatory drugs with the potential to treat conditions such as neuropathy and inflammatory pain.
Merlin Biosciences Merlin Biosciences Limited is a specialised venture investor in life sciences companies managing three funds, Merlin Fund LP (Fund I), Merlin Biosciences Fund LP (Fund II) and Merlin Biosciences Fund III LP (Fund III), worth in excess of (Eur)450 million of equity capital. Merlin invests in companies that are bringing to market human medicines or medical devices with groundbreaking technology and significant commercial potential. Since 1997, Merlin has participated in the funding of over 30 European biotechnology companies on behalf of its investment partnerships. Leveraging a worldwide, dedicated network of advisers and experienced strategic partners, Merlin has built a reputation for being an exceptional partner for management teams who can create substantial value for investors. For additional information visit our website at; www.merlin-biosciences.com.
The Cambridge Gateway Fund The Cambridge Gateway Fund invests predominantly in companies with global reach that are connected with the eastern region of the UK and which are exploiting innovative core technology in Information and Communication Technologies and Life Sciences. The Fund is advised by NW Brown Capital Partners Limited, which is authorised by the FSA; and associated with the NW Brown Group, which was founded in Cambridge in 1974. The group employs 80 people and offers a comprehensive range of financial services to private and corporate clients. For additional information, visit our website at; www.cambridgegateway.com.
Avlar BioVentures Limited Avlar BioVentures Limited manages two funds both focussed upon seed and early stage opportunities in biotechnology and healthcare. Avlar I closed in March 1999 with total commitments of (Pounds)20.7 million and has made investments in 11 companies. Avlar II had a final close in January 2003 with a commitment of (Pounds)43 million. For additional information, visit our website at; www.avlar.com.
Johnson & Johnson Development Corporation Johnson & Johnson Development Corporation (JJDC), the venture capital arm of Johnson & Johnson, focuses on minority equity investments in start-up healthcare companies with particular emphasis on biopharmaceutical products and medical devices.
JJDC is headquartered in New Jersey, USA, with offices in California, Belgium, Israel, Japan and the UK. For more information, visit our website at www.jjdevcorp.com.
Northern Venture Managers Northern Venture Managers is an independent venture capital management firm, which operates from offices in Newcastle upon Tyne, Reading and Edinburgh and now has assets under management of more than (Pounds)150 million. Northern Venture Management specialises in making equity investments of between (Pounds)500,000 and (Pounds)5 million in UK unquoted companies and has the capacity to deliver deals of up to (Pounds)15 million. For additional information, visit our website at; www.nvm.co.uk.
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