GSK to acquire Praecis

GlaxoSmithKline (GSK) has announced that it is to acquire Praecis Pharmaceuticals. Under the terms of the transaction, GSK will purchase the company for a total of $54.8 million (27.9 million pounds) for the entire interest in the company, equivalent to a cash price of $5 per share.

Praecis reports that it is “pleased” with the ending of the transaction which concludes a course started by its board to increase and fulfil the attainment of value for its shareholders.

The company is a biopharmaceutical firm that uses propriety technology to discover and develop new pharmaceutical compounds to improve treatment options for patients. Its DirectSelect technology enables the establishment and use of large libraries for drug discovery purposes.

Praecis also has PPI-2458 in development, the compound being a MetAP-2 inhibitor indicated for cancers, including solid tumours and non-Hodgkin’s lymphoma.

Allen Oliff, senior vice president of molecular discovery research at GSK, said: “Praecis has created novel therapeutic programmes and innovative chemical-synthesis and screening technology that will complement our own discovery capabilities.

Earlier this week, GSK announced that it had completed the acquisition of CNS, the marketer of the Breathe Right product range that includes snore relief products and nasal dilator strips.