Asterand has signed an agreement to acquire
BioSeek Inc., a drug discovery services company, for $1.0 million payable in Asterand shares. The acquisition is part of Asterand’s strategy to enhance its position in the global human tissue services market, and according to a company statement, will be Asterand’s first step in its “buy and build” strategy.
A further payment of as much as $13 million will be payable in 2011, pending sales growth achieved by BioSeek by December 31, 2010. If further payment is made, the first $3.0 million will be paid in Asterand shares and additional payments will be either cash or shares.
BioSeek has developed a human primary cell based, high throughput assay system (BioMAP) designed to replicate the intricate cell and pathway interactions present in inflammatory, autoimmune and cardiovascular diseases. The system predicts clinical activities of a potential drug candidate through comparison of results to a database of profiles for known compounds.
BioSeek is located in South San Francisco, CA and has 14 employees. BioSeek’s key managers will join Asterand’s senior management team. Additionally, BioSeek’s chief executive officer, Dr. Mike Venuti, has agreed to act as a consultant to Asterand for a transition period.
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