GlaxoSmithKline buys Domantis for £230m; labs to stay in Cambridge
GlaxoSmithKline plc will acquire Domantis Ltd, a leader in developing the next generation of antibody therapies, for £230m in cash.
Privately owned Domantis will become part of GSK's Biopharmaceuticals Centre of Excellence for Drug Discovery and will continue to operate from its laboratories in the Cambridge Science Park.
The acquisition is subject to clearance under the Hart-Scott-Rodino Antitrust Improvements Act and is expected to complete in January.
Mike Owen, Senior VP, Biopharmaceuticals CEDD at GSK said: "Domantis has pioneered the extension of antibody therapies to potentially far wider applications than has been possible with conventional monoclonal antibodies. Its talent and world-leading technology will complement the work we are already taking forward."
Robert Connelly, Domantis' founding CEO, said the deal "allows us to embed our R&D organization intact within a company committed to fully exploiting the potential therapeutic applications of our technology."
Next-gen antibody therapy
Domantis was launched in December 2000 by Sir Gregory Winter and Dr Ian Tomlinson of the UK Medical Research Council's Laboratory of Molecular Biology (MRC-LMB) with the backing of the MRC and MVM Ltd to commercialise the next generation of antibody therapy, which is based on the smallest functional binding units of human antibodies.
These units, termed domain antibodies (dAbs), may be administered in inhaled, topical and, potentially, oral formulations as well as by injection and infusion. The Domantis technology also enables dAbs to serve as building blocks for therapeutics simultaneously directed at more than one disease target.
Since start up Domantis has raised a total of $83m, most recently $29m in a Series B prime venture financing in December 2005 from new investors Novo Nordisk and MC Life Science Ventures, Inc. (a subsidiary of Mitsubishi Corporation), together with its existing investors which included 3i, MVM and Peptech Ltd.
Venture capitalist 3i said the sale of its stake would generate an IRR of more than 100% on its investment.
CSO stays on
"When Sir Gregory and I founded Domantis, our aim was to build a world-class R&D team capable of producing a wide range of dAb products that would have a major impact in medicine," said Dr. Tomlinson, now Chief Scientific Officer.
"The acquisition by GSK highlights the tremendous potential and value of dAbs and provides the funding and capabilities to advance a large number of dAb products through clinical testing. Combining the core protein-engineering capabilities, technology, and intellectual property of Domantis with the basic science and clinical and commercial strength of GSK creates an opportunity to advance biopharmaceuticals on a global scale."
Current research programs at Domantis address diseases including rheumatoid arthritis, asthma, chronic obstructive pulmonary disease and multiple myeloma.
Dr. Tomlinson will continue to manage the Cambridge laboratories of Domantis while serving as a GSK executive in the Biopharmaceuticals CEDD reporting to Dr. Owen.
8th December 2006
