Bionomics buys US cancer stem cell firm Eclipse Therapeutics

Australian biotech firm Bionomics (ASX: BNO) has expanded its presence in the USA with the acquisition of San Diego, USA-based private biotechnology company Eclipse Therapeutics in a scrip-based $10 million deal. With consideration of around 23.9 million shares at $0.4176 per share, Eclipse shareholders, that include Biogen Idec (Nasdaq: BIIB), will own about 6.5% of Bionomics’ issued capital.

A spin-off of the Biogen Idec oncology franchise, Eclipse is developing drug candidates that target cancer stem cells (CSCs). CSCs are the seeds at the root of the cancer, and CSC technology is thus viewed by many oncologists and pharmaceutical companies as a high priority, new oncology drug frontier. Eclipse’s lead compound ET101 is aimed at an undisclosed CSC target which is over-expressed on most solid tumors. ET101 is expected to move into human trials in 2014. In March 2012 Eclipse reached a development and manufacturing agreement for production of the ET101 antibody with Swiss life science leader Lonza Group Limited.

“This acquisition elevates and expands Bionomics’ oncology pipeline beyond BNC105, our primary cancer drug candidate which is now at advanced clinical stages. It also establishes Bionomics as a global leader at the forefront of cancer stem cell therapeutics,” said Deborah Rathjen, chief executive and managing director of Bionomics.”