Synthetic Biologics Inc. (NYSEAMERICAN: SYN) has signed a definitive agreement to purchase VCN Biosciences S.L (VCN), which is creating a novel oncolytic adenovirus platform designed for IV delivery, triggering tumor cell death and promoting immune cell infiltration into tumors. VCN platform has been designed to overcome challenges restricting OV therapies development
The transaction to cost $4.7 million in cash
The transaction will cost $4.7 million in cash upfront, plus $2.4 million in VCN liabilities will be assumed. In addition, VCN will receive shares of Synthetic Biologics common stock, representing 19.99 percent of the Company’s total shares outstanding. The Company has also agreed to pay an additional $70.3 million if certain future milestones are met, the majority of which are related to late-stage clinical development and regulatory approval. The transaction is scheduled to close in the first quarter of 2022, subject to usual closing conditions, including approval by the Spanish government of the Company’s acquisition of VCN under Spain’s Foreign Investment Act.
CEO Steven Shallcross stated, “We are excited to announce this transformative acquisition, as VCN’s platform represents a potentially breakthrough approach to cancer treatment with oncolytic viruses by allowing for systemic delivery, high selectivity and enhanced tumor access. In addition to triggering tumor cell death, these therapies have been shown to elicit a strong antitumor immune response. The results of the Phase 1 clinical trial in PDAC, a highly aggressive and lethal malignancy, are very encouraging with respect to tumor response and survival. Significantly, biopsies in these patients confirmed up regulation of tumor immune markers and induction of a robust antitumor immune response, including increased tumor infiltration by cytotoxic T-cells.”
VCN delighted to join Synthetic Biologics
VCN Chief Executive Officer Manel Cascallo said, “Joining together with Synthetic Biologics is a significant opportunity as it allows us to partner with an experienced team, well-versed in drug development, manufacturing, and commercialization. We anticipate the combined Company will have the financial resources to fund our clinical programs to key value inflection points and we look forward to a successful future together.”
