“Since our acquisition of CYT387 nearly three years ago, YM has made great progress in advancing CYT387 through the clinical, regulatory, manufacturing and business development processes,” David Allan, chairman of YM, said in a press release. “While Gilead's acquisition will end a long, varied and interesting journey for YM, we are pleased to have this transaction crystallize the present value of this important therapeutic candidate.”

 

CYT387 is YM’s lead drug candidate, an oral, once-daily, selective inhibitor of the Janus kinase (JAK) family. The JAK family of enzymes are implicated in several disorders, including myeloproliferative diseases, inflammatory disorders and some cancers. CYT387, which inhibits JAK1 and JAK2 specifically, has demonstrated positive results in a Phase I/II clinical trial in 166 patients with myelofibrosis, a life-threatening myeloproliferative disease in which the bone marrow is replaced by scar tissue. As noted by PubMed Health, when bone marrow scarring occurs, the marrow is unable to produce enough blood cells, which can lead to anemia, bleeding issues and a higher risk of infection. In addition, as the liver and spleen try to make up the deficit, the organs swell, a result known as extramedullary hematopoiesis. Once the transaction is complete, Gilead plans to move the compound forward into a Phase III clinical trial in myelofibrosis in the second half of 2013.

 

“This acquisition represents an opportunity to add a complementary clinical program in the area of hematologic cancers to our growing oncology portfolio,” Norbert W. Bischofberger, Ph.D., Gilead’s executive vice president of Research and Development and chief scientific officer, said in a statement. “Based on promising Phase 2 data, we believe CYT387 could provide important clinical benefit for patients with myelofibrosis, including potential improvements with regard to anemia and decreased dependence on blood transfusions. We look forward to advancing CYT387 into a Phase 3 study as quickly as possible and to exploring its potential in other myeloproliferative diseases with significant unmet medical need.”  

 

“This agreement represents a positive outcome both for myelofibrosis patients and for our shareholders. Gilead has the research and development capabilities and the resources needed to more fully realize the potential of CYT387 as a therapeutic advance for myelofibrosis patients and potentially for other indications,” Dr. Nick Glover, president and CEO of YM, added in a press release.  

 

The finalization of the transaction is subject to shareholder approval as well as customary closing conditions, including court and regulatory approvals as well as expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

 

YM brought on BofA Merrill Lynch and Bloom Burton & Co. as financial advisors, and Gowling Lafleur Henderson LLP, Heenan Blaikie LLP and Dorsey & Whitney LLP as its legal counsel for the transaction. Wilson Sonsini Goodrich & Rosati, Professional Corporation and Blake Cassels and Graydon LLP were brought on by Gilead for advisement on the acquisition.      

 

 

SOURCE: Gilead press release