Roche Acquires Piramed

Roche announced plans to acquire Piramed Limited, a privately-owned UK company focusing on therapeutics targeting PI3-kinase (PI3-K). Roche will spend $160 million on the acquisition, along with a $15 million milestone payment, due upon commencement of phase II clinical trials for the company’s oncology program.

Through this acquisition, Roche’s R&D pipeline is strengthened by Piramed’s two major research programs targeting PI3-K-alpha in oncology and PI3K-delta in inflammatory disease. The PI3-K-alpha program has a compound in Phase I and is currently being developed in collaboration with Genentech, in whom Roche has a majority ownership interest. The previously unpartnered PI3-K-delta program, while at a preclinical stage, will be integrated into the Roche Group’s R&D portfolio for inflammation.

The PI3-K pathway is known to play an important role in disease progression and in resistance to chemotherapeutics in cancer cells. According to a Roche statement, preclinical studies have demonstrated the activity of PI3-K inhibitors in a broad range of tumours such as breast and lung cancer, as well as their potential importance in treating inflammatory diseases such as rheumatoid arthritis.

“The integration of Piramed’s promising research and development reaffirms and further strengthens Roche’s leadership in oncology,” said William M. Burns, chief executive officer of Roche Pharmaceuticals Division. “In addition, this acquisition augments our research efforts in debilitating diseases such as rheumatoid arthritis.”

Michael Moore, chief executive officer of Piramed, said, “Since Piramed was formed in 2003, we have struck a significant licensing deal with Genentech and advanced our highly promising first oncology product into the clinic. Today’s acquisition by Roche underlines the value of our pipeline and is a testament to the quality of the science developed by our team. With Roche’s undisputed excellence in oncology and inflammatory disease, Piramed has found a secure long term home for some world class science.”