Celgene (NYSE:CELG) has made a $15 million strategic investment in a cancer drug developer, which gives it a seat on the company’s board and opens up collaboration opportunities down the road.
Acetylon Pharmaceuticals uses histone deacetylase or HDAC inhibitors to develop small molecule cancer treatments as well as treatments for autoimmune and other diseases. The lead drug in its pipeline is to treat multiple myeloma and is currently in phase 1-2a clinical trials.
Although Celgene’s seat on the board, which will be occupied by its chief commercial officer Mark Alles, will be strictly observational, it provides the company with a better view of the four-year-old, Boston-based startup’s progress and facilitates a collaborative role.
Walter C. Ogier, Acetylon’s president and chief executive officer, said in a company statement:
“The potential synergistic combination of Celgene’s class-leading myeloma drug, Revlimid, with Acetylon’s selective HDAC6 inhibitor, ACY-1215, in clinical trials is an exciting prospect for the treatment of patients with progressive disease. In addition to Celgene’s funding, we will also welcome their contribution of clinical and commercialization expertise to our organization as we advance and expand our clinical trials program over the coming year.”
Last year, Acetylon raised more than $27 million in series B financing.
The investment comes on the heels of Summit, New Jersey-based Celgene’s $925 million acquisition of Avila Therapeutics last month to boost its hematology drug discovery pipeline.
