Chromos enters definitive agreement to acquire Targeted Molecules and secures financing commitments

28-Oct-2005

Chromos Molecular Systems Inc. ("Chromos") announced that it has entered into a definitive agreement under which it will acquire Targeted Molecules Corporation ("TMC"), a privately held San Diego based biotechnology company focused on the research and development of two antibody product candidates for treatment of multiple sclerosis (MS) and acute thrombosis. Concurrently with the acquisition Chromos will complete a private placement to raise not less than $6.0 million, the proceeds of which will be used to finance operations. The private placement will be led by Neuro Discovery Limited Partnership ("NDLP"). Additional participants in the private placement are expected to include current shareholders of Chromos and TMC, and the lenders under the $2.0 million bridge loan facility which closed earlier this year.

As a result of the acquisition, Chromos will gain two proprietary humanized monoclonal antibody product candidates, TMC-2003 for inflammatory diseases and NHAT for acute thrombosis. TMC has demonstrated efficacy of these candidates in preclinical proof of principle studies.

TMC-2003 (to be re-designated CHR-1103) is a humanized monoclonal antibody directed to VLA-2, an integrin involved in maintenance of inflammation. In preclinical studies, TMC has demonstrated that anti-VLA2 therapy reduces inflammation in animal models of multiple sclerosis (MS), inflammatory bowel disease and rheumatoid arthritis. Following the completion of the transaction, Chromos intends to initially focus on development of TMC-2003 for treatment of acute episodes of relapse in relapse-remitting MS patients. Chromos expects to complete preclinical safety and toxicology studies by 2H-2006 and anticipates filing an Investigational New Drug application in Q4-2006.

NHAT (to be re-designated CHR-1201) is a humanized monoclonal antibody directed to von Willebrand's Factor designed for treatment of acute thrombosis. NHAT is designed to selectively inhibit thrombosis (blood clots) without increasing the risk of bleeding by inhibiting the interaction between the growing thrombus and platelets; thus preventing full vessel blockage. NHAT does not increase bleeding because its target plays no significant role in platelet recruitment, aggregation and stabilization normal blood vessel repair. TMC has targeted the large unmet clinical need in neuro-thrombotic disorders as the primary indication for its NHAT antibody. Chromos intends to continue this path and initiate clinical development as soon as resources allow.

https://www.bionity.com/en/news/49808/chromos-enters-definitive-agreement-to-acquire-targeted-molecules-and-secures-financing-commitments.html