Pharming to acquire outstanding shares of biotechnology company DNage

By E. Janene Geiss

Philadelphia, March 24 - Pharming Group NV said Friday that it has agreed to acquire the outstanding share capital of DNage BV, a privately held company focused on discovery and development of products for aging diseases and cancer.

DNage was founded in 2004 as a spinoff from the Erasmus Medical Center in Rotterdam, The Netherlands, to commercialize breakthrough science by researchers in the area of DNA damage and repair, according to a company news release.

These researchers were the first to establish an explicit connection between DNA repair and the development of major aging diseases, such as osteoporosis and neurodegeneration, in addition to the already known link between DNA-repair and cancer, officials said.

The transaction is expected to close by the end of May. Pharming said it will pay 4 million shares in several installments to the existing DNage shareholders in addition to 600,000 warrants, future milestone payments, based on DNage product development achievements, and royalties on future sales of DNage products, officials said.

DNage has active programs in the areas of osteoporosis, neurodegeneration (brain diseases), metabolic diseases such as type 2 diabetes and genetic diseases such as premature aging.

Its first product for Cockayne disease, a rare genetic disease in which children suffer from accelerated aging while developing severe aging diseases, is in late-stage preclinical development, officials said.

A combination of Pharming with DNage will generate important synergies. For instance, there is scientific evidence that lactoferrin, one of Pharming's current products undergoing regulatory review, may have a beneficial effect in the field of osteoporosis.

In the area of immunology, where deterioration of the immune system is a major age related problem, there is strong clinical evidence that Pharming's lead product, a C1 inhibitor, plays an important role, officials added.

"The acquisition of DNage will provide Pharming with access to highly innovative products and a technology platform for new markets in the areas of aging and cancer," Francis Pinto, chief executive officer of Pharming, said in the release.

Pharming said it expects the acquisition of DNage to trigger additional business development opportunities including new partnerships as well as grants and subsidies.

DNage's current shareholders include the ErasmusMC and venture capital funds represented by Life Sciences Partners, Inventages and founders and management.

The company has an exclusive research and license agreement with ErasmusMC under which it supports research in ErasmusMC and holds an exclusive license to intellectual property developed by ErasmusMC in the field, officials said.

DNage is a Rotterdam, The Netherlands, biopharmaceutical company founded in 2004 as a spinoff from the Department of Genetics of the Erasmus Medical Center Rotterdam. The company was funded through an equity investment of an international syndicate of venture capitalists consisting of Life Sciences Partners of The Netherlands and Inventages of Switzerland.

Pharming, based in Leiden, The Netherlands, is developing innovative protein products for unmet needs. The company's products include potential treatments for genetic disorders, specialty products for surgical indications, intermediates for various applications and food products.

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