Amgen has entered into a definitive merger agreement to acquire Avidia, Inc. for $290 million in cash. The transaction provides Amgen with Avidia’s lead product candidate, an inhibitor of interleukin 6 (IL-6) for the treatment of inflammation and autoimmune diseases, which is in Phase I trials. Avidia is a biopharmaceutical company that discovers and develops a new class of human therapeutic known as Avimer proteins.

Under terms of the agreement, Amgen will also pay as much as $90 million upon the achievement of certain milestones. Following the completion of the transaction, Avidia will become a wholly owned subsidiary of Amgen.

“The Avimer technology is among the most attractive protein-based technologies currently under development,” said Roger M. Perlmutter, M.D., Ph.D., Amgen’s executive vice president for R&D. “Avimers may have several advantages as therapeutic products in terms of biological activity, tissue distribution, reduced immunogenicity and improved manufacturing efficiencies.”

“I am very pleased with this transaction, which demonstrates the enormous value and potential of the Avimer protein technology platform as a groundbreaking new way to develop drugs,” said Peter Van Vlasselaer, Ph.D., Avidia’s chief executive officer. “We are looking forward to becoming part of the world’s leading biotechnology company. Amgen’s abundant resources and expertise will enable us to develop our technology and clinical programs to their full capacity.”

The transaction, subject to customary closing conditions, has been approved by the boards of directors of each company and is expected to close in the fourth quarter of this year.