Lawrenceville-based Celsion Corporation, an oncology drug development company, will acquire EGEN Inc., a biopharmaceutical company focused on treating difficult diseases, the two companies announced Tuesday.
According to the purchase agreement, a subsidiary of Celsion will acquire all of the assets of EGEN in exchange for cash and shares of Celsion totaling $14 million. The upfront payment consists of $10.5 million of Celsion's common stock, or 16.4 percent of the company’s shares, and $3.4 million in cash.
In addition to the upfront payment, $30.4 million in future milestone obligations are payable to EGEN if Celsion successfully completes certain clinical developments and licensing.
The acquisition will create an oncology-focused research and development company.
"This transaction offers an immediately well-defined strategic fit, bringing together discovery and preclinical expertise with clinical and operational excellence, ground-breaking technologies with high-value clinical assets, to form a company whose synergy provides substantially more than its parts," Michael H. Tardugno, Celsion's President and CEO, said in a statement.
Khursheed Anwer, Ph.D., president and chief scientific officer of EGEN, said in a statement: "Since EGEN was founded 12 years ago, our team has worked to develop technologies that overcome the delivery barriers that have kept nucleic acid-based therapies from achieving their full potential and significant promise. By joining with Celsion now, we add not only the operational and managerial expertise to accelerate development of these assets and technologies, but gain access to the added financial resources of an established public company."
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