Celgene has agreed to acquire Acetylon Pharmaceuticals, a Boston-based company specializing in cancer therapeutics. Prior to the acquisition, Acetylon will spin out a new company, Regenacy Pharmaceuticals, LLC, which will focus on developing drug candidates that selectively regenerate intracellular transport and upregulate gene expression to modify the course of disease.

Regenacy will receive exclusive worldwide rights to Acetylon’s Phase II selective histone deacetylase 6 (HDAC6) inhibitor, ricolinostat. The compound is being developed to treat certain non-cancer disease indications, including neuropathies. Regenacy will also receive exclusive worldwide rights to Acetylon’s preclinical selective HDAC1,2 inhibitor candidates and patent families for development in all human disease indications, including sickle cell disease and beta-thalassemia.

The acquisition will provide Celgene with worldwide rights to Acetylon’s selective HDAC6 inhibitor programs and intellectual property in oncology, neurodegeneration, and autoimmune disease, including its lead drug candidates citarinostat and ricolinostat.

Financial terms of the acquisition were not disclosed. The transaction is subject to customary closing conditions, including the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Members of Acetylon’s executive team will join Regenacy, which will operate out of Acetylon’s former headquarters in Boston’s Seaport District. Regenacy will be owned by Acetylon shareholders (excluding Celgene) and will receive net working capital in Acetylon to fund Regenacy operations.

Source: Acetylon Pharmaceuticals