December 8th, 2006
From Venturewire today: In one of the largest acquisitions ever of a private biotech company, GlaxoSmithKline said this morning it agreed to buy venture-backed Domantis for about $454 million in cash.
Europe’s biggest drug maker said Domantis will become part of GSK’s Biopharmaceuticals Centre of Excellence for Drug Discovery while continuing to operate from laboratories in Cambridge, U.K.
One of Domantis’ major backers, 3i, said the deal will generate an internal rate of return of 100% on its investment. 3i first backed Domantis in 2004, leading a GBP17.5 million Series B round and then another GBP17 million to extend the round in December 2005.
Also investors in the company are Danish biopharmaceutical group Novo Nordisk, Mitsubishi subsidiary MC Life Science Ventures Inc., Peptech, Albany Ventures and MVM Ltd.
Large pharmaceutical companies have been throwing their cash around as of late to enhance their drug pipelines. Domantis develops antibody therapies based on the smallest functional binding units of human antibodies which means they can be administered orally, by inhalation and topically as well as by injection.