Align Pharmaceuticals, which launched in 2005 and began selling cancer therapy treatments in January of 2006, is being sold.
Cyclacel Pharmaceuticals (Nasdaq: CYCC) said Monday before the markets opened that was acquiring Align in a cash and stock deal worth as much as $5.3 million.
Align, which is privately held, had had a 40 person sales staff for the sale of its products. Cyclacel, which is based in New Jersey, has several oncology and hematology products in development.
Cyclacel plans to move the Align operation to New Jersey.
The deal calls for Cyclacel to pay between $3.5 million and $3.8 million for Align’s assets. If certain financial goals are met, Cyclacel said an additional incentive of its stock valued at some $1.5 million would be issued. Cyclacel shares closed at $5.81 on October 5.
“The acquired business provides Cyclacel with the foundation to build a commercial organization focused on cancer that is complementary to Cyclacel’s oncology/hematology products in development and is part of Cyclacel’s strategy to build a diversified biopharmaceutical business,” Cyclacel said in a statement.
Align’s products are for the management of radiation and chemotherapy.
William Collins, chief executive officer at Align, will join Cyclacel as the company’s general manager.
"This strategic acquisition by Cyclacel offers important advantages for ALIGN, its shareholders and employees," Collins said in a statement. “Cyclacel provides us with an opportunity to grow our existing business and has an exciting pipeline of novel, targeted drugs under development. The transaction positions us for future growth and will help us attract highly qualified professionals as we gradually expand our sales team over time.”
