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Mdrna acquires Cequent Pharmaceuticals.

MANews-(C)2009-2010

US biotechnology firm Mdrna (NASDAQ:MRNA) today inked a definitive agreement to buy local Cequent Pharmaceuticals for USD46m (EUR34m) in stock.

The two companies specialise in the research and development of therapeutic products based on RNA interference (RNAi). RNAi is a system within living cells that helps control genes which produce proteins causing diseases.

With the transaction, Mdrna will receive Cequent's product for Familial Adenomatous Polyposis (FAP) treatment -- a genetic disorder, which precedes colon cancer. The new product is expected to begin Phase 1 clinical trial shortly, the companies said in a joint statement.

Under the terms of the deal, Cequent shareholders will get Mdrna common shares valued at total USD44m, and warrants and option holders -- stock for USD2m, based on the 10 day volume-weighted average price of Mdrna stock on 31 March. That would provide Mdrna shareholders with a 56% stake in the united entity and Cequent shareholders with 44%.

The managing boards of the two firms and Cequent preferred shareholders have approved the acquisition.

The deal is expected to close by early July 2010.

Mdrna's financial advisor was Cannacord Adams.

Country: ; USA

Sector: Biotechnology; Pharmaceuticals

Target: Cequent Pharmaceuticals Inc

Buyer: Mdrna Inc

Deal size in USD: 46m

Type: Corporate acquisition

Financing: Debt; All-stock

Status: Agreed

Buyer advisor: Cannacord Adams Inc

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Publication:M & A Navigator
Date:Apr 1, 2010
Words:215
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