Red Sky Partners' client, Acetylon Pharmaceuticals, enters into an exclusive strategic collaboration with Celgene Corporation

August 1, 2013

Red Sky Partners is pleased to announce that our client, Acetylon Pharmaceuticals, has entered into an exclusive strategic collaboration with Celgene Corporation to advance the science of Epigenetics, including an option for Celgene to acquire Acetylon. Xconomy covered the deal on Monday.  

Red Sky Partners served as business development advisor to Acetylon Pharmaceuticals for this transaction. 

The collaboration will focus on the continued clinical advancement of Acetylon's lead candidate, ACY-1215, an oral first-in-class selective HDAC6 inhibitor being developed for hematological malignancies, a further HDAC6 inhibitor  ACY-738 for neurological diseases, an HDAC1/2 inhibitor, and a yet unnamed project, spanning cancer and non-cancer disease indications. 

Under the terms of the agreement, Acetylon will receive a $100 million upfront cash payment. In return, Celgene receives an exclusive option to acquire Acetylon at a cash purchase price that will be within a defined value range and based upon future independent valuations of Acetylon. Acetylon will retain control of its drug development programs during the option period. If Celgene exercises its option to acquire Acetylon, an upfront payment determined from the valuation process and subject to a minimum of $500 million will be paid at the time of closing. 

Additionally, Acetylon shareholders will be eligible to receive potential future milestone payments for either approvals or additional indications of drugs developed by Acetylon and for accomplishing defined sales targets. If all the milestones are achieved, the additional value accruing to Acetylon shareholders would be $1.1 billion, comprised of $250 million for regulatory milestones and $850 million for sales milestones.


Membership Deliverables

MassBio Membership gives you:

Purchasing power-MassBio negotiates a broad-based collection of services on behalf of member companies and passes the savings on to its members. 

Networking and professional development-MassBio organizes and executes numerous conferences, committee meetings, and networking events throughout the year.

MassBio Signature Events-Attend our Investors Forum, Innovator Roundtables, Pharma Days, our Golf Classic Fundraiser, Policy Leadership Breakfast, and many others.

Public policy & Advocacy-As the state's leading advocate for our life science super cluster, we fight for public policy initiatives and tax incentives in Massachusetts and Washington, D.C., that will enable biotechnology companies to do their best work.

Economic development-MassBio provides expert advice and guidance to help companies find suitable locations and resources as they move to and grow in the Bay State. We make Massachusetts a better place for your business.

Visibility/Resources-Members are listed on a searchable directory that includes a profile and link to the company's website. We highlight your company's latest news by posting to our MassBio member news page. In addition, members can post job openings on our website free!

Educational incentives-We promote education, workforce development and lifelong learning through the MassBioEd Foundation. The foundation customizes training programs for companies and educational institutions and promotes science in the classroom through BioTeach. MassBio members receive a discount on courses offered by the foundation.