Celgene Corporation, a US-based pharmaceutical company, has formed a strategic collaboration with PharmAkea Therapeutics, a US-based biopharmaceutical company focused on developing small molecule therapeutics directed at cancer and fibrotic diseases. Celgene will commit $35m to PharmAkea during an initial three-year alliance term, with an option to extend the collaboration with additional funding; Celgene will also take an equity stake in PharmAkea with an exclusive option to acquire the company. Bay City Capital, a life sciences venture capital firm, has invested $10m in series A equity financing.
PharmAkea was founded in 2012 with seed funding from Celgene.
Tom Daniel, executive vice president and president of research and early development at Celgene, said: “The very strong team at PharmAkea is led by drug hunting professionals with a proven track record of delivering important medicines to patients. As our commitment to immune & inflammatory diseases expands, this investment partnered with Bay City Capital represents an extension of our commitment to develop innovative approaches and complementary strategic assets for high therapeutic impact.”
Carl Goldfischer, managing director of Bay City Capital, said: “This kind of collaboration exemplifies an innovative way that venture firms, entrepreneurs, and industry can come together to support and foster progress in the life sciences.”
Merv Turner, former chief strategy officer of Merck & Co. and an advisor to Bay City Capital, joins PharmAkea’s board along with Tom Daniel, Carl Goldfischer and Rob Williamson.