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Celgene to invest $15m in Acetylon Pharmaceuticals

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February 10, 2012|By Chris Reidy

Acetylon Pharmaceuticals Inc., a Boston firm developing cancer treatments, announced a $15-million strategic equity investment from Celgene Corp., a New Jersey-based biopharmaceutical company.

Acetylon said that Celgene will invest via the purchase of Series B-2 Preferred Stock and that Mark Alles, Celgene’s chief commercial officer, will serve as a nonvoting observer to the Acetylon board of directors. Celgene does not receive rights or options to Acetylon technology under the terms of the equity purchase agreements, Acetylon said in a press release.

In a statement, Acetylon president and chief executive Walter C. Ogier noted that a drug made by Celgene has the potential to be combined with ACY-1215, the current designation of Acetylon’s lead drug candidate, to become an effective drug-cocktail treatment for patients with myeloma.

Previously, Acetylon had raised about $40 million from private investors, including a fund controlled by the family of Robert Kraft, the owner of the New England Patriots.