Roquefort Therapeutics PLC (LSE:ROQ) is making what it describes as a "transformational and value enhancing" acquisition with the all-paper purchase of a biotechnology group founded by Nobel Laureate, professor Sir Martin Evans.
His company, Oncogeni, is focused on two areas of cancer research: small interfering RNA (gene silencing) and mesodermal killer (MK) cells.
The latter is a relatively new area of research where cellular medicine is engineered to kill cancer cells and enhance the effect of natural killer cells that also target the disease.
Roquefort believes Oncogeni’s efforts will complement its current research programme into midkine inhibition.
It is handing over 50mln shares worth just under £4mln to Oncogeni’s owners. It is also raising via a share placing just over £1mln to fund the preclinical development of Oncogeni’s two cancer programmes.
Roquefort acquiring lab and manufacturing facilities as part of the deal, which will also bring in expert leadership in Evans and Oncogeni’s chief executive Ajan Reginald. Both will join the Roquefort board.
Additionally, the acquisition and the placing will introduce new shareholders, including the Japanese drug developer Daiichi Sankyo and CH Health, a specialist biotech venture capital investor.
Chairman Stephen West said: “The expanded portfolio transforms Roquefort Therapeutics into a multi-indication company with greater upside potential and improved drug development risk mitigation.”