Approach for RNAi-focused Silence Therapeutics sees shares rocket
This article was originally published in Scrip
Silence Therapeutics' shares opened at 12.5 pence on 7 September, up 75% on the previous day's opening price, after the company announced that it had been approached by an undisclosed company.
Silence said that the approach "may or may not lead to offer for the company". The company's CEO Dr Philip Haworth told Scrip he could not comment on the approach.
AstraZeneca could be a potential suitor, having recently extended its R&D collaboration with Silence covering siRNA molecules. Under the alliance, which began in July 2007, Silence and AstraZeneca are identifying and optimising five novel siRNA therapeutics molecules addressing respiratory and oncology indications.
Silence received £7.5 million up front from AstraZeneca in 2007 and could receive a total of £200 million in fees and milestones plus royalties on product sales (scripintelligence.com, 14 July, 2010).
However, Silence also has deals with Dainippon Sumitomo and Quark Pharmaceuticals. Silence signed a siRNA delivery collaboration with Dainippon Sumitomo in August last year, which was extended in March this year to include additional disease targets selected by Dainippon.
In 2004, Quark and Silence signed an agreement to discover AtuRNAi lead compounds against the gene target RTP801. Pfizer inlicensed the compound, since renamed PF-4523655, in 2006 for the treatment of age-related macular degeneration (AMD), diabetic retinopathy and other indications. PF-4523655 is in two Phase II trials for the treatment of diabetic macular oedema and AMD.
Silence closed the acquisition of the privately held US firm Intradigm in a stock-based deal in January. Silence issued almost 80 million ordinary shares to acquire the entire share capital of Intradigm, which valued the US firm at around £20 million (scripintellignece.com, 17 December 2009).
The company's market cap stood at £28 million at the end of April.