Pfizer to acquire biotherapeutics company CovX

In a move to boost its pipeline of biotech products, Pfizer Inc inked an agreement with CovX to acquire the privately-held biotherapeutics company.

Financial terms which is expected to close in the first quarter were not disclosed.

With the deal, Pfizer is looking forward to the completion of its new Biotherapeutic and Bioinnovation Centre based in California. Based in La Jolla, California, CovX will operate as a division of Pfizer's new Biotherapeutic and Bioinnovation Centre, the company said in a recent press statement.

"The acquisition of CovX is a further step in Pfizer's strategy to acquire and identify new product candidates that we can put into development, leveraging both Pfizer's expertise and that of world-class scientists charged with discovering and bringing in new compounds," said Jeffrey Kindler, chairman and chief executive officer, Pfizer. ". We are looking for the best science wherever we can find it, with a special focus in our priority areas, such as biotherapeutics.

" CovX's biotherapeutic platform is a technology that links therapeutic peptides to an antibody "scaffold". The peptide targets the disease while the antibody scaffold allows the peptide to remain in the body long enough to achieve therapeutic benefit. The technology thereby allows half-life extension and bioavailability to support optimal dosing regimens for peptide therapeutics.

As validation of this technology, CovX has generated three early- stage compounds, one diabetes and two oncology compounds, that are expected to further strengthen Pfizer's biologic pipeline portfolio.

"This deal demonstrates Pfizer's ongoing commitment to build a competitive biotherapeutics enterprise through the acquisition of talented scientists, promising product candidates and a cutting edge technology platform," said Dr. Corey Goodman, president, Biotherapeutic and Bioinnovation Centre, Pfizer. "CovX scientists will remain in place, which reflects our decision to partner differently and maximize the productivity of the research initiatives underway outside of our walls."

"We are pleased to transition the CovX technology to Pfizer's Biotherapeutic and Bioinnovation group and are confident they have the vision and resources to scale the platform and realize the opportunity to make efficacious drugs which will make a difference in peoples' lives," stated Shehan Dissanayake, chairman, CovX and CEO, Tavistock Life Sciences. The acquisition is subject to customary closing conditions (including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976), and is expected to close in the first quarter of 2008.