Amgen And Celgene Acquire Cancer Drug Companies

Amgen and Celgene are each launching into 2012 with acquisitions that beef up their cancer drug pipelines and add unique technologies.

Amgen will pay $1.2 billion for Micro­met, which brings bispecific T-cell engager (BiTE) antibody technology. BiTE antibodies bind to both tumor cells and T cells, causing cancer cell death and proliferation of more T cells at the tumor site. Amgen also gets blinatumomab, a BiTE antibody in Phase II trials for treatment of acute lymphoblastic leukemia.

Amgen is purchasing Micromet, whose R&D hub is in Germany, after test-driving its technology. Last July, the companies agreed to jointly develop BiTE antibodies against three solid-tumor targets.

Micromet’s technology has “long-term value,” Leerink Swann stock analyst Joshua Schimmer told investors in a research note. But the price tag, he said, is “higher than we would have wanted to see.”

In a separate deal, Celgene is paying up to $925 million for Avila Therapeutics, a Bedford, Mass.-based biotech company with covalent drug technology. The acquisition includes $350 million in cash; up to $195 million in milestones based on commercialization of Avila’s lead drug candidate, AVL-292; and another $380 million if other drugs stemming from the technology are approved.

Whereas conventional drugs form reversible bonds with their protein targets, a covalent drug permanently links to its mate. The approach seeks to increase potency and selectivity while lowering toxicity. AVL-292, in Phase I testing against lymphoma, permanently blocks Bruton’s tyrosine kinase (Btk), a protein that helps modulate B cells.