Biotechnology producer Bioverativ agreed yesterday to acquire True North Therapeutics, a US-based rare disease therapy developer backed by pharmaceutical firms including GlaxoSmithKline, in a deal that could reach $825m.
Bioverativ will pay $400m upfront plus assumed cash, and potentially up to $425m in milestone payments to True North’s shareholders dependent on development, regulatory and sales achievements.
True North was spun out of pharmaceutical company iPierian in 2013, and its lead drug candidate is a monoclonal antibody called TNT009 which is being developed to combat a rare haemolytic disease known as cold agglutinin disease (CAD).
John Cox, Bioverativ’s CEO, said: “One of our strategic priorities is to invest thoughtfully in business development with a focus on building our pipeline in areas where we believe we can make a real difference for patients.
“This acquisition of True North is aligned with those goals and with our vision to become the leading rare disease company focused on blood disorders. It strengthens our pipeline with a potential first-in-class therapy to treat CAD, a rare blood disorder with a high unmet patient need.”
The deal follows $142m in total venture capital, including $45m in an October 2016 series D round co-led by hedge funds Redmile Group and Perceptive Advisors that included HBM Healthcare Investments, Franklin Templeton Investments and undisclosed existing investors.
True North secured $22m in a 2014 series A round featuring iPierian, as well as SR One, Biogen Idec New Ventures and Baxter Ventures, respective subsidiaries of GlaxoSmithKline and fellow pharmaceutical firms Biogen Idec and Baxter International.
The series A also included VC firms Kleiner Perkins Caufield & Byers (KPCB) and MPM Capital, both of which returned for a $35m series B the following year led by investment firm OrbiMed and also backed by SR One and Baxter Ventures.
True North raised a further $40m in December 2015 from SR One and Baxalta Ventures, a subsidiary of Baxter spinout Baxalta, as well as KPCB, MPM, OrbiMed, New Leaf Venture Partners, Perceptive Advisors and Cowen Private Investments.