Celgene Corporation : Celgene May Purchase $4.9 Million in Shares in GlobeImmune IPO
08/17/2012| 07:07pm US/Eastern
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By Christopher Zinsli
Celgene Corp. (CELG) could purchase nearly $5 million in additional shares of GlobeImmune Inc. as part of the clinical-stage drug developer's initial public offering, according to a regulatory filing.
GlobeImmune said Celgene has indicated interest in buying $4.9 million of the venture-backed company's shares in the offering, although no firm agreements have been made.
Celgene could purchase the shares to satisfy the terms of a newly amended licensing agreement for GlobeImmune's lead cancer product, which the companies are evaluating as a pancreas cancer therapy in a Phase IIb clinical trial.
The amended partnership, agreed to in July, gives Celgene an extra year to exercise its option for the product, known as GI-4000. This gives GlobeImmune time to deliver Celgene a report on how the product performed in the Phase II portion of a Phase II/III trial.
In exchange for the additional time, Celgene agreed to increase the future royalty payments it will make to GlobeImmune once sales of GI-4000 begin. Celgene also agreed to purchase a $4.9 million equity stake in GlobeImmune by March 31, 2013. GlobeImmune said the potential IPO participation of Celgene would satisfy this requirement.
Celgene and GlobeImmune are partnered on a series of drug candidates, the most advanced of which is GI-4000.
Celgene holds a 16% stake in GlobeImmune, of Louisville, Colo. Other shareholders include HealthCare Ventures and Morgenthaler Partners, with 14% each; Wexford Capital and Sequel Venture Partners, each with a 9% stake; and Lilly Ventures and Medica Venture Partners, which each hold a 6% share.
Write to Christopher Zinsli at christopher.zinsli@dowjones.com. Follow him on Twitter at @zinsli
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