In a deal that brings together cancer therapeutics anddiagnostics, Oncogene Science Inc. said today that it hasentered into an agreement in principle to acquire AppliedbioTechnology Inc. The deal is valued in excess of $10 million.
The acquisition will be made using between 2 million and 3.5million shares of Oncogene common stock (NASDAQ:ONCS),depending on the market price during a period prior to closing.Oncogene stock closed Wednesday at $5.50, down 38 cents.
Privately held AbT, located in Cambridge, Mass., focuses on thedevelopment of cancer diagnostics. Steven Peltzman, AbT'spresident and chief executive officer, will continue to run AbT,which will operate as a wholly owned subsidiary of Oncogene.
Oncogene, based in Manhasset, N.Y., is developing cancer-related products based on oncogenes and growth factors.
"The alliance of these companies creates a powerful strategicfit in the area of cancer," said Gary Frashier, president and CEOof Oncogene.
AbT will spin off its vaccine/AIDS business and other non-cancer assets prior to closing. Investors in the spinoffcompany will include many of AbT's previous venture capitalinvestors in addition to some new venture firms.
In conjunction with the acquisition, Becton Dickinson and Co.has agreed in principle to collaborate with Oncogene to developcancer diagnostic based on the combined technologies ofOncogene and AbT. Details weren't released.
Oncogene hopes to complete the deal within 90 days.
-- Karen Bernstein BioWorld Staff
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