Keryx Biopharmaceuticals, Inc. (Nasdaq: KERX, London AIM: KRX) has announced last week, that it has agreed to acquire Access Oncology, Inc., Access is a privately-held cancer-focused biotechnology company.
Keryx will assume approximately $7.5 million in Access's liabilities and, subject to the achievement of certain clinical, regulatory and sales milestones, will issue up to 4 million shares of common stock as consideration for all of the shares of Access.
Access Oncology was founded in 1999 by Michael S. Weiss who is also chairman and CEO of Keryx. Since 2001, Access has been headed by president and CEO, Dr. I. Craig Henderson, MD, a well-known breast cancer clinician and researcher. Following the acquisition, Henderson will be appointed as a board member and president of Keryx and will head up Keryx's oncology effort.
"This is a very important day for Keryx shareholders. This deal immediately builds out our oncology franchise with three very exciting drug candidates and tremendous expertise in cancer drug development. Adding three promising clinical-stage oncology compounds to our lead drug candidate, KRX-101, is a major achievement for Keryx," Weiss said.
Henderson said, "I have spent my career researching and developing cancer drugs and I truly believe that the Access products represent some of the most important and exciting drug candidates in the field of cancer treatment today. I am excited to become a part of this rapidly evolving organization and am confident that over the next 12 to 24 months we can achieve significant value creation milestones within the Access product portfolio."
The acquired drug portfolio includes three clinical stage compounds, to be designated as KRX-0401, KRX-0402 and KRX-0403.
KRX-0401 is a novel, first-in-class, oral AKT-inhibitor. AKT (protein kinase B) is one of the molecules that controls the balance between cell survival and cell death (apoptosis). The AKT kinase pathway is one of the protein cascades that pass messages to the inside of cells. When AKT activation is disrupted, cancer cells lose their ability to self-destruct and thus become harmful.
KRX-0401 has demonstrated single agent anti-tumor activity in Phase I studies. KRX-0401 is currently in nine Phase II single agent clinical trials in six tumor types, including, breast, prostate, melanoma, pancreatic, sarcoma and head and neck cancer, being conducted by the NCI under a Collaborative Research and Development Agreement ("CRADA") arrangement.
KRX-0401 is an inhibitor of AKT activation. Keryx said that it is believed to be the only AKT inhibitor in clinical development primarily for the treatment of cancer. Keryx added that KRX-0401 has been shown to significantly inhibit additional signal transduction pathways including mitogen-activated protein kinase (MAPK) and Jun N-terminal kinase (JNK), adding to its anti-cancer effects. Moreover, pre-clinical data generated suggests significant synergy with other anti-cancer therapies.
Accordingly, in 2004, Keryx plans to commence studies of KRX-0401 in combination with chemotherapy in multiple cancer types.
Based on KRX-0401's novel mechanism of action, ease of administration (oral), and potential applicability to a broad group of tumor types, Keryx said that that KRX-0401 represents a major market opportunity.
The acquired cancer portfolio also includes KRX-0402, an inhibitor of DNA repair, which is also being studied by the NCI under a CRADA arrangement in multiple Phase II clinical trials.
In addition, the portfolio includes KRX-0403, which is a novel spindle poison in the same general class as Taxol, Taxotere and Navelbine. Spindle poisons stop cell division. KRX-0403 has completed a Phase I study and is expected to enter Phase II studies in 2004.
Published by Globes [online] - www.globes.co.il - on 11 January 2004