Merck announces acquisition of SmartCells

Merck has entered into a definitive agreement to purchase SmartCells, a company that produces a glucose-responsive insulin formulation for the treatment of diabetes mellitus.

In a statement published yesterday (December 2nd), Merck said it will acquire all outstanding stock in the company and provide SmartCells shareholders with an upfront cash payment.

They will also be eligible to receive development and regulatory milestones for products stemming from the transaction, with potential aggregate payments in excess of $500 million (320.2 million pounds).

Merck said the acquisition will equip its laboratories with innovative technology for the development of glucose-responsive insulins.

"If this investigational technology is ultimately approved for use with patients, it could provide an important new therapy for the treatment of diabetes," said Nancy Thornberry, senior vice-president and head of the company's diabetes and obesity franchise.

The acquisition was unanimously approved by the board of directors at SmartCells, which filed the patent for its SmartInsulin formulation in 2003. The company is based in Beverly, Massachusetts.