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Aduro (ADRO) to Acquire BioNovion in Cash and Stock Deal

Aduro BioTech, Inc.ADRO announced that it has entered into a definitive agreement to acquire the Netherlands based BioNovion Holding B.V.

As per terms of the agreement, BioNovion is entitled to receive €14.5 million in cash and €14.5 million in Aduro stock. In addition, the company's shareholders will receive payments upon the achievement of specific regulatory milestones.

The transaction is slated to close in Oct 2015.

We note that the acquisition of BioNovion will expand Aduro's preclinical pipeline to include immune checkpoint inhibitors and other monoclonal antibody candidates with unique specificity.

We remind investors that Aduro has been pursuing deals to boost its pipeline. Earlier this month, the company inked a clinical trial agreement with Incyte Corporation INCY under which Aduro's CRS-207 will be evaluated in combination with Incyte's oral IDO1 inhibitor, epacadostat (INCB24360), in patients with ovarian cancer.

In Mar 2015, the company inked a collaboration agreement with Novartis AG NVS for the worldwide research, development and commercialization of immuno-oncology products derived from its cyclic dinucleotide (CDN) approach to target the STING (stimulator of interferon genes) receptor.

Meanwhile, the company continues to progress on its pipeline. Currently, the company is evaluating CRS-207 for a number of cancer indications such as mesothelioma and pancreatic, non-small cell lung, ovarian and gastric cancers. Aduro plans to initiate a phase I/II study on CRS-207 in patients with platinum-resistant ovarian, fallopian or peritoneal cancers in early 2016.

CRS-207 has orphan drug status in the U.S. for the treatment of mesothelioma and in combination with GVAX Pancreas for the treatment of pancreatic cancer. The FDA also granted Breakthrough Therapy designation to CRS-207 in combination with GVAX Pancreas for the treatment of metastatic pancreatic cancer.

This combination is in a phase II study for the treatment of metastatic pancreatic cancer, with results expected in the first half of 2016.

Aduro carries a Zacks Rank #4 (Sell). Gilead Sciences Inc. GILD is a better-ranked stock in the health care sector with a Zacks Rank #1 (Strong Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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