Vanguard Medica to acquire Cerebrus

After a week of speculation, Vanguard Medica has confirmed that itintends to acquire the troubled UK biotechnology company Cerebrus in a stock deal valued at L9.6 million ($15.4 million). The new group is expected to be renamed Vernalis.

Cerebrus specializes in discovering and developing therapeutics for disorders of the central nervous system, and Vanguard says that it will be undertaking a detailed operating review, looking at the scientific, commercial and financial information "to maximize the opportunities arising from merging the two businesses."

Robert Mansfield, chief executive of Vanguard, said that the combination of the two firms creates a new company "with exciting potential and a complementary skills base." Furthermore, the unveiling of a Cerebrus/Roche collaboration deal on obesity (at the same time as the merger announcement) "provides a strong validation of the quality of the science at Cerebrus and the calibre of its research team."