Ullrich's Third Deal

(May 29th 2008) The Japanese pharma trust Daiichi Sankyo has taken over a small German drug developer. At least one prominent researcher will be delighted.

When asked by a Lab Times reporter about his favourite biotech company, German biochemist Axel Ullrich answered, "Well, U3 Pharma combines everything that I have been trying to realise." This was in June 2006, when Ullrich had already founded four companies (Sugen, Axxima, U3 Pharma and Kinaxo). Two of them had been snapped up by bigger fish: Sugen by Pharmacia/Pfizer in 1999, Axxima by GPC Biotech in 2005.

Now Ullrich has sold his darling to Japan. The pharmaceutical trust Daiichi Sankyo, Tokyo, recently acquired the Martinsried-based cancer drug developer U3 Pharma for 150 million euros ($235 million). Daiichi Sankyo is Japan's second largest pharmaceutical company.

U3 was founded in 2001 by Max Planck researcher Ullrich and others. The firm, that develops targeted cancer drugs (aka human or humanized therapeutic antibodies), has raised more than 45 million euros in funding up until now. U3 Pharma currently has 27 employees (mostly working directly in research and development), but still no drugs in clinical trials. However, U3's lead programme U3-1287, for breast cancer, a cooperative project with Amgen, will go to clinic later this year, the company says. The substance is a monoclonal antibody that inhibits oncogenic signalling and tumor proliferation.

With its acquisition, the new mother company, Daiichi Sankyo, could have made a clever move. In the past, Ullrich's former research has led to lucrative cancer blockbusters like Herceptin (sold by Genentech/Roche) and Sutent (sold by Pfizer). Takashi Shoda, President and CEO of Daiichi Sankyo, places great hope in U3 Pharma and its preclinical pipeline: "[This] acquisition is an ideal strategic fit for our oncology portfolio." Together with U3 Pharma's four monoclonals, Daiichi Sankyo now has seven potential cancer therapeutics in its pipeline.

Luckily, U3 Pharma's 27 employees mustn't prepare for relocation to Asia. According to the new owner, they will be kept on by Daiichi Sankyo in Martinsried.