Silence Therapeutics (AIM: SLN) has agreed to acquire Intradigm Corporation to set up an enlarged RNAi (RNA interference) company, aiming to build a competitive offering and “facilitate more deals of greater value within the pharmaceutical industry.”
Silence will issue 79.4 million shares to acquire Intradigm, which would give its shareholders and management a 36.6% stake in the company if Silence’s shareholders approve the transaction. The company simultaneously announced an equity placing at 23 pence per share to raise £15 million with existing shareholders of Intradigm, including Alta Partners, Grazier Healthcare, Lilly Ventures, Roche Finance and Astellas venture committing £5 million of new funds through the subscription.
The companies are expecting the transaction to bring a number of benefits to the enlarged entity, including a “broad platform of technologies” to address the discovery, capacity and delivery of RNAi therapeutics, a combined intellectual property portfolio as well as internal and partnered product candidates as four of the nine siRNA candidates currently in clinical development globally utilise silence’s technology.
The enlarged entity is expected to have the financial capabilities to develop its own therapeutic candidates.
“By bringing together a comprehensive platform of siRNA delivery and development technologies, we believe Silence Therapeutics will be a partner of choice for those seeking to develop RNAi therapeutics,” said Chairman of Silence Therapeutics Iain Ross.
The board of the enlarged company will be made up of eight members, with five coming from the board of directors of Silence and the remaining three currently serving on the board of Intradigm.
Shares in Silence fell 20% to 20 pence following the announcement.