Sanofi-Aventis acquires TargeGen

France's Sanofi-Aventis has agreed to acquire San Diego-based TargeGen, a biopharmaceutical company, for up to $560 million.  Sanofi-Aventis will make an upfront payment of $75 million upon closing of the deal, which is expected in the third quarter. Further milestones payments will occur at different stages of development of TargeGenÔÇÖs lead product TG 101348.  TargeGen develops kinase inhibitors for the treatment of leukemia, lymphona and other blood disorders. TG 101348 is an experimental treatment for myelofibrosis, a bone marrow disorder that disrupts the bodyÔÇÖs production of blood cells. TargeGen completed early-stage patient studies of the drug last year, with further trials planned for the second half of 2010.  Besides myelofibrosis, it is thought that TG 101348 could be effective in a variety of other hematological malignancies. Currently there are no approved or adequately effective therapies to treat these diseasesÔÇömyeloproliferative neoplasmsÔÇöwhich are estimated to affect around 400,000 patients in the US and Europe.  Commenting on the deal, Peter G. Ulrich, president, chief executive officer and co-founder of TargeGen, said: ÔÇ£Sanofi-aventis brings many strengths to the continued development and potential commercialization of TG101348. With their global focus on oncology and long term commitment to this patient population, we are confident they will maximize the potential of TG101348 across multiple clinical indications.ÔÇØ  Marc Cluzel, executive vice-president of research and development at Sanofi-Aventis, added: "The acquisition of TargeGen represents a further significant step to increase our engagement in the field of hematological malignancies.ÔÇØ  He concluded: ÔÇ£In addition, this acquisition is another example of our strong commitment to oncology to provide patients, physicians and public health stakeholders with breakthrough medicines addressing unmet medical needs.ÔÇØ  Sanofi-Aventis has made a number of acquisitions in North America of late. Earlier this month it announced that it was buying the assets of Montreal's Canderm Pharma Inc. for an undisclosed sum; and last December it made a $1.9 billion (Ôé¼1.5 billion) acquisition of Chattem Inc, creating the fifth largest consumer goods company in the world by revenues, as well as giving the company increased leverage in the US market.  Sanofi-Aventis is a leading global pharmaceutical company with world headquarters in France. In 2009, it had sales of Ôé¼29.3 billion (approx. $35.8 billion). Its portfolio includes prescription medicines, consumer health care and generics; and it is a world leader in vaccines. It employs more than 100,000 people in over 100 countries.  TargeGen is a privately held biopharmaceutical company based in San Diego, California.