Connecticut firm dispenses cash for Enobia

January 7, 2012 by  

Only half a year after Montreal’s Enobia Pharma Inc. expanded to Cambridge,the Canadian-based company has inked a deal with Connecticut pharmaceutical giant Alexion for a rumored $1.1 billion.

As the lightning-quick turnaround keeps Cambridge business card printing houses busy, Alexion reps report that Enobia’s production mandate to research and produce drug therapies which focus on life-threatening and extremely rare metabolic disorders is a good fit with its own. Alexion’s market position is to:

“develop and deliver life-transforming therapies for patients suffering with ultra-rare, severe, and life-threatening disorders.”

In a media release, the company prescribed an initial injection of $610 million, part cash and part bank debt, expected to be finalized by April 2012, with a balance of $470 million post-take over based on Enobia’s ability to meet regulatory goals and appropriate sales targets.

When Enobia first opened its American headquarters in Cambridge in early 2011, it rented office space, but quickly leased 21,000 square-feet of space on Cambridge Parkway from Verenium Corp. At the same time, Alexion began a spending spree with the expansion of its Rhode Island plant in Smithfield, adding a further 20,000 square feet to the facility it purchased in 2006. Alexion spent $150 million at that time.

With the purchase, Alexion will inherit Enobia’s lead product, ENB-0040, a compound which the U.S. Food and Drug Administration has now placed in Phase 2 clinical development. The drug is a therapy for patients living with a rare degenerative bone disorder which may adversely affect organs and soft tissue.