Cubist Pharmaceuticals acquired Illumigen Biosciences for $9 million in cash. Illumigen shareholders stand to make up to $332.5 million based on development, regulatory, and commercialization milestones.
Illumigen's lead compound is IB657, a protein therapeutic in preclinical development for the treatment of HCV infections. Cubist expects to file an IND application in 2008.
Illumigen is now a wholly owned subsidiary of Cubist. During the development of IB657 for HCV infections, Cubist will pay up to $75.5 million depending on achievement of certain milestones. If IB657 is developed for the treatment of viruses other than HCV, development and regulatory milestone fees of up to $117 million could apply. Assuming that HCV or other Illumigen antiviral products are commercialized, additional milestone payments of up to $140 million as well as tiered royalties may also apply.