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United States : BIOPHARMACEUTICAL firm EGEN purchased by Celsion

June 24, 2014

The acquisition of EGEN, including its Phase Ib product candidate EGEN-001 and therapeutic platform technologies, TheraPlas, TheraSilence and RAST is completed by US-based oncology drug development firm Celsion.

Celsion's subsidiary CLSN Laboratories as part of the deal has purchased all assets and assumed certain specified liabilities of EGEN.

Celsion at the closing issued $8.5m worth of common stock, paid approximately $3m in cash to EGEN, and holds back $2.1m worth of common stock until 02 August 2016 for expense adjustment and certain indemnification claims of Celsion.

Despite the upfront payment, over $30m in future milestone obligations are payable to EGEN if Celsion successfully completes certain clinical developments and licensing.

The grouping of the two firms will produce a fully integrated, oncology-focused research and development company with a multi-phase clinical pipeline, platform technologies for the discovery of new, nucleic acid-based immunotherapies and other anti-cancer DNA/RNA therapies, and expertise from bench to bedside.

EGEN-001 is an IL-12 plasmid immunotherapy enclosed in a nanoparticle delivery system and is at present in Phase Ib ovarian cancer trials.

The purchase adds Celsion's ThermoDox, a proprietary heat-activated liposomal encapsulation of doxorubicin.

Cantor Fitzgerald in this transaction served as financial advisor, while Sidley Austin and O'Melveny & Myers as legal counsel for Celsion.

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Source: TendersInfo (India)

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