Catalyst Biosciences, which is privately held and backed by pharmaceutical firms Novartis and Johnson & Johnson, has agreed to merge with another US-based biopharmaceutical company, publicly-listed Targacept.
The newly formed company will continue operations as Catalyst Biosciences and will be listed on Nasdaq. It will focus on developing proteases – a type of enzyme that breaks down proteins – and drug candidates to treat haemophilia.
Targacept specialises in treatments for serious nervous system, gastrointestinal and genitourinary diseases and disorders.
Founded in 2002, Catalyst has attracted $92m in funding from investors including Johnson & Johnson Development Company and Novartis BioVentures, respective subsidiaries of Johnson & Johnson and Novartis, as well as Burrill & Company, RCT BioVentures, Sofinnova Ventures, Morgenthaler Ventures, HealthCare Ventures and Essex Woodlands Health Ventures.
Catalyst also received an $11m upfront payment in 2008 for a research agreement with Centocor Research & Development as well as funding for two years of research of preclinical drug canidates.
The following year it secured a $21m upfront payment from pharmaceutical company Wyeth Pharmaceuticals as part of a research collaboration agreement. An agreement for a Phase 1 clinical trial for proteases with pharmaceutical company Pfizer has resulted in $11m in milestone payments since 2010.
Catalyst’s shareholders will own a majority stake of 65% in the merged company, which will have approximately $40m in capital once the transaction is completed.