Silence Thera to merge with Intradigm to create leading RNAi company

The UK's Silence Therapeutics and USA-based Intradigm Corp have announced plans to merge their businesses to form a leading company in the field of RNAi (RNA interference). The enlarged company, to be called Silence Therapeutics, will have multiple RNAi discovery, development and delivery technologies, a broad internal and partnered product pipeline and a broad portfolio of intellectual property.

By close of trading on December 16,, shares in Silence Therapeutics, which returned from suspension following announcement of the merger, were down 20%, at 19.76 pence, underperforming a 0.5% rise in the Alternative Investment Market.

The directors believe the merger will enable Silence Therapeutics to build a competitive offering and facilitate more deals of greater value with the pharmaceutical industry. In particular, the combined business will be able to offer potential partners a choice of technologies to deliver RNAi molecules to diseased tissue, one of the main challenges in the emerging field of RNAi therapeutics. In addition, the enlarged Silence Therapeutics will have the financial strength to exploit its technology by developing its own therapeutic candidates.

Silence Therapeutics will issue 79,640,668 of its Ordinary Shares to acquire the entire share capital of Intradigm. Upon completion of the transaction, Intradigm's shareholders and management will own 36.6% of the enlarged group. The completion of the proposed acquisition is contingent upon approval by Silence Therapeutics' shareholders.

Raises £15 million