(Updated, 3:15 p.m.)
BEVERLY, Mass. – Merck & Co. has agreed to acquire SmartCells Inc. in a potential $500 million deal including an undisclosed upfront cash payment, the companies announced Thursday.
SmartCells shareholders could receive up to $500 million in aggregate payments if various clinical development and regulatory milestones for the products are met in addition to sales-based payments, according to a news release.
SmartCells Inc, a biotech startup, filed a base patent for its SmartInsulin technology in 2003. The once-a day injectable form of insulin is designed to make diabetes treatment more convenient and improve blood-glucose control.
According to the startup’s website, the technology could also be applied to endocrine disorders, treatments with poor compliance or therapeutic window issues, and drug-device combinations such as event-triggered thrombolytic-eluting stents.
“Maintaining control of blood glucose levels represents a daily challenge for people living with diabetes,” said Nancy Thornberry, senior vice president of Merck Research Laboratories. “Through the acquisition of SmartCells we have obtained innovative technology that may enable us to develop glucose-responsive insulin.
“If this investigational technology is ultimately approved for use with patients, it could provide an important new therapy for the treatment of diabetes. This holds the potential to significantly impact the treatment of this disease,” she added.
Providence-based Cherrystone Angels has invested nearly $1 million in SmartCells. Other investors include: the Boston Harbor Angels, Angel Healthcare Investors, Beacon Street Angels and Common Angels.
Most recently, SmartCells Inc. completed a $4.1 million round of Series D financing on June 16.
The SmartInsulin technology was originally developed at the Massachusetts Institute of Technology by Todd Zion, president, co-founder and CEO of SmartCells.
“This acquisition positions our novel technology for success in the hands of a leading pharmaceutical company with proven expertise and exceptional resources to deliver breakthrough diabetes products to patients,” said Zion.
SmartCells’ board of directors unanimously approved the transaction, the news release said.
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