Eleven Biotherapeutics Inc (NASDAQ:EBIO) has acquired Canada-based cancer drug developer Viventia Bio for US$13.5mln.
Investors liked the move and marked Eleven shares up by 12% when trading got underway in the US on Wednesday.
Following the deal, Viventia shareholders will own 19.9% of the enlarged company, which will focus on the development of novel therapies based upon antibody fragments genetically fused to cytotoxic proteins.
In an unusual development, Viventia’s chief executive Stephen Hurly will take over running the company with Abbie Celniker also to remain a director.
Eleven's pipeline now includes Vicinium and Proxinium, Vivnetia’s two lead products.
Vicinium is in a Phase 3 clinical trial for high grade non-muscle invasive bladder cancer (NMIBC), with topline data expected in the first half of 2018.
Proxinium, meanwhile, is expected to enter Phase 2 development in early 2017 for the treatment of late-stage squamous cell carcinoma of the head and neck.
Stephen Hurly said: Our TPTs [Targeted Protein Therapeutics] combine specific tumor targeting with a protein based tumor killing payload, and will be developed to serve cancer patients in areas of high unmet need.
Eleven shares rose 40c to US$3.78.