Clinical Data Sells Certain Non-Core Assets to Intrexon Corporation
News Sep 02, 2009
Clinical Data, Inc. has announced the sale of certain assets to Intrexon Corporation, a transaction that is consistent with the Company’s ongoing plan to focus resources on its valuable late-stage and preclinical drug programs.
Under the asset purchase agreement, Intrexon will assume certain liabilities and pay Clinical Data $1.5 million in cash to acquire substantially all the property and equipment situated in Avalon Pharmaceuticals’ Germantown, MD facility, while Clinical Data will retain all intellectual property rights acquired in the Avalon acquisition, including all rights to a promising oncology drug candidate targeting the beta-catenin pathway and the AvalonRX® biomarker discovery platform.
In addition to the cash payment received in the transaction, Clinical Data estimates the annual cost-savings associated with this transaction to be approximately $4.0 to $5.0 million.
“This transaction is another step forward in our strategy to allocate our resources to Clinical Data’s late-stage drug development programs and other early-stage priority programs, while continuing to divest any assets that are not core to this mission,” said Drew Fromkin, Clinical Data’s President and Chief Executive Officer. “It also demonstrates our commitment to fiscal discipline as we continue the integration of Avalon Pharmaceuticals and take immediate action to reduce unnecessary costs, while supplementing our cash resources.”
As part of the transaction, Intrexon will assume Avalon’s remaining lease obligations for its Germantown, MD facility, and hire 11 employees located at the site to maintain continuity of operations. All employees who are directly supporting the beta-catenin program are remaining with Clinical Data to advance the program.
As part of the purchase agreement, Clinical Data will sublease from Intrexon a portion of the laboratory space and offices that are directly associated with Clinical Data’s oncology program, which includes the lead beta-catenin compound.