1. In Vivo
  2. >>Global Vision

Astex Cashes in with metaGen

 
• By Chris Morrison

Astex Technology's takeover of Schering AG spin-out metaGen Pharmaceuticals provides the Cambridge-based firm with more cash, a stronger relationship with a pharmaceutical partner, complementary technology assets, and, potentially, an improved preclinical pipeline. MetaGen investors inch closer to an exit by trading stakes in an early-stage, unfloatable company for a piece of a more mature, well-funded firm several steps closer to an IPO.

When Schering AG spun out metaGen Pharmaceuticals AG, which specializes in identifying novel cancer drug targets, in 2001, the German pharmaceutical firm hoped to accomplish two goals [See Deal]. First, by divesting an expensive area of early-stage and non-core biotechnology research, Schering would be able to trim R&D costs while at the same time taking advantage of VC funds—in this case, €42 million ($49 million) from Apax Partners—to grow the firm into an integrated drug discovery company, underscoring the popularity of pharmaceutical spin-offs among biotechnology financiers.

Secondly, granting metaGen its independence would facilitate the biotech's plans to strike alliances with other pharmaceutical firms and otherwise leverage...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required
Start Free Trial

Already a subscriber?

More from Global Vision

More from In Vivo

Deals In Depth: June 2025

 
• By Deanna Kamienski and Maureen Riordan

Five $1bn+ alliances were penned in June, and four exceeded $2bn.

Global Pharma Interest In Korea Undeterred Despite Political Roller Coaster

 
• By Jung Won Shin

Despite recent political turmoil, outside investor and corporate interest in South Korean biopharma innovation appears robust or even increasing.

Podcast: Oxolife’s Agnés Arbat, Winner Of The European Prize For Women Innovators

 
• By Jo Shorthouse

Agnès Arbat, CEO of Oxolife and winner of the EU Women Innovators Prize, joins In Vivo to discuss OXO-001, a novel non-hormonal treatment aimed at improving embryo implantation in IVF. She shares insights from her biotech journey and the future of fertility innovation.