Celgene in deal with PharmAria, including an acquisition option

Recently-formed drug discovery company PharmAria has entered into an agreement with US biotech firm Celgene (Nasdaq: CELG) to advance the discovery of new high quality small-molecule therapeutics targeting cancer and fibrotic diseases, which includes an option to acquire PharmAria at a later stage.

Under the terms of the deal, Celgene will provide seed-stage funding for PharmAria, and will work with PharmAria to secure additional Series A venture funding in which Celgene will also participate. Following a successful Series A financing, Celgene will receive an equity position in PharmAria, as well as the option to license certain R&D programs. The seed funding being provided by Celgene will be used to secure the initial scientific team, initiate operations and begin to identify clinical candidates against selected targets. Further financial terms were not disclosed.

PharmAria brings together a proven team to drive its drug discovery and development programs. The Company was co-founded in mid-2012 by three highly-experienced early-drug developers, John Hutchinson, president, Jilly Evans, chief scientific officer and Kevin Holme, chief operating officer, who have over 60 years of combined pharmaceutical experience.