NEW YORK, July 30 – Microbial genomics company Microcide Pharmaceuticals said Monday it had signed an agreement to acquire Althexis in an effort to step-up its drug discovery capabilities.
Microcide of Mountain View, Calif., and Althexis of Waltham, Mass., also announced that the combined company would receive $60 million in a private round of financing. Prospect Venture Partners, New Enterprise Associates, and Schroder Ventures are particpating in the placement.
Microcide has developed VALID, a system for studying microbial genomics, while Althexis uses structure-based methods, known as ACTT, to validate drug targets.
"The integration of Althexis' proprietary ACTT technology with Microcide's VALID platform will help speed target validation and new compound discovery, while Althexis' SBDD will help guide our multiple lead-optimization efforts to achieve better drug candidates, sooner," Jim Rurka, CEO of Microcide, said in a statement.
Mark Skaletsky, formerly chairman and CEO of Althexis, will become chairman and CEO of Microcide. Rurka will remain a member of Microcide’s board of directors.
Under the terms of the agreement, Microcide will issue about 5.3 million shares of its common stock for all of the outstanding shares of Althexis. The deal is valued at approximately $22.2 million, based on Microcide’s Friday closing price of $4.19.