With its acquisition of DNA Therapeutics, Onxeo (PA:C4X) has added a clinical stage signal-interfering DNA (siDNA) technology, which has already been tested in a Phase I trial for melanoma and demonstrated an attractive safety profile and preliminary anti-tumour activity, when administered locally. The new product called AsiDNA is a first-in-class and differentiated asset in the up-and-coming DNA repair interference field. Our increased valuation of Onxeo is €343m.
Acquisition adds clinical stage asset
Onxeo has acquired Paris-based private biotech company DNA Therapeutics for an upfront payment of €1.7m by issuing new shares (1.4% of the total outstanding before the acquisition). An additional €1m in shares or in cash is due once lead-product AsiDNA enters a Phase II trial, which will explore AsiDNA administered systemically. Future commercial royalty payments could total up to €25m per indication. The timing of the initiation of Phase I with AsiDNA has not been announced yet, but we believe it could be around the end of 2016 or early 2017, which we use in our model.
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