Illumigen shareholders could earn up to $332.5 million in milestone-dependent fees.

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.

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