Rigontec, a Germany-based RNA therapeutics developer backed by pharmaceutical firm Boehringer Ingelheim, yesterday agreed to an acquisition by US-based pharmaceutical company Merck for up to €464m ($554m).
Merck, through an unnamed subsidiary, will make an upfront cash payment of €115m, with the remaining €349m dependent on clinical, development, regulatory and commercial milestones. The deal is subject to certain closing conditions.
Rigontec, spun out from University of Bonn’s Institute for Clinical Chemistry and Clinical Pharmacology in 2014, is developing an immuno-oncology treatment that exploits a mechanism of the body’s immune system known as RIG-I.
The treatment recognises viral RNA, facilitating the destruction of diseased cells and ensuring immediate and long-term immunity to tumours. The technology also has applications in infectious and inflammatory diseases.
Rigontec closed a $32.7m series A round in September 2016, raised over multiple tranches.
The first €9.45m close in 2014 was co-led by Boehringer Ingelheim Venture Fund, the pharmaceutical company’s corporate venturing division, and Wellington Partners. German public-private partnership High-Tech Gründerfonds (HTGF), state-owned development bank NRW.Bank also took part.
VC firms Forbion Capital Partners and Sunstone Capital supplied a €4.8m extension in 2015, before Boehringer Ingelheim, HTGF, NRW.Bank, Forbion, MP Healthcare Venture Management, Sunstone and Wellington put in the final €15m.
Christian Schetter, chief executive of Rigontec, said: “Merck is a true pioneer in the immuno-oncology space and we are thrilled that our technology will benefit from their experience and leadership position.
“We are confident that our programs will be in the best hands and that the team at Merck will continue the work we established with our scientific founders and brought into the clinic within three years since our foundation as a company.”