Senesco enters merger accord with Fabrus

USA-based biotech firm Senesco Technologies (OTCQB: SNTI) has agreed to terms and executed a non-binding Letter of Intent to merge with Fabrus, a privately-held, biotechnology company focused on expanding the clinical impact of antibodies by addressing drug targets resistant to traditional antibody discovery methods.

“We are excited by the opportunity to expand our R&D portfolio with high quality technology and look forward to potentially advancing a series of monoclonal antibody-based therapeutic candidates that will address multiple diseases,” stated Leslie Browne, president and chief executive of Senesco, adding: "Fabrus antibodies could complement our eIF5A gene regulatory platform, which has been shown to kill cancer cells, by directing nanoparticle-based therapeutics to the cells of interest."

Fabrus has two collaborations in place with large pharma and biotech companies to discover antibodies to their targets, and has an internal pipeline that includes next generation antibodies targeting renal cell carcinoma and inflammation. The company’s technology has been successful in generating antibodies against very difficult, therapeutically important cell surface receptors and ion channels.

Will boost antibody discovery activities

“We believe this merger will significantly help speed Fabrus’ trajectory as we continue our proprietary antibody discovery activities,” commented Vaughn Smider, founder and president of Fabrus. “The early backing of Pfizer, OPKO Health, and Dr Phillip Frost [an investor in both Senesco and Fabrus], through a 2010 strategic investment into Fabrus by OPKO alongside Frost Gamma Investments Trust, has been instrumental in Fabrus’ development to this point. We are enthusiastic about the enhanced growth opportunities that this merger with Senesco represents, especially the development of advanced nanoparticle drugs that can be targeted with our antibody and nanocage systems,” Dr Smider noted.

Under the terms of the merger agreement, the present shareholders of Senesco and Fabrus will each receive around 50% of the combined companies. Fabrus will merge with a wholly-owned subsidiary of Senesco, and Senesco shareholders will be entitled to hold their existing securities. The parties expect to sign a definitive agreement in early 2014, and close at the same time or shortly thereafter. Additional details of the transaction will be disclosed once an agreement is executed.