Sanofi-Aventis buys US cancer drug developer TargeGen in deal that could be worth $560 million

French drug major Sanofi-Aventis went on another spending spree this morning - albeit relatively small - announcing that it has reached agreement to acquire TargeGen, a privately-held US biopharmaceutical company developing small molecule kinase inhibitors for the treatment of certain forms of leukemia, lymphoma and other hematological malignancies and blood disorders.

Under the terms of the deal, Sanofi-Aventis will make an upfront payment of $75 million on closing of the transaction, which is expected in the third quarter of this year. Further milestones will occur at different stages of development of TargeGen lead product TG 101348. The total amount of all payments, including the upfront amount, could reach $560 million.

'Sanofi-Aventis brings many strengths to the continued development and potential commercialization of TG101348,' said Peter Ulrich, president, chief executive and co-founder of TargeGen, adding: 'With their global focus on oncology and long term commitment to this patient population, we are confident they will maximize the potential of TG101348 across multiple clinical indications.'