Pfizer to Buy Gene Therapy Company Bamboo Therapeutics

Pfizer Inc. said Monday that it would acquire gene therapy company Bamboo Therapeutics Inc., the latest sign of a resurgence of interest in the technology.

Pfizer will pay $150 million for the shares of Bamboo it doesn't hold, with potential milestone payments of as much as $495 million. In the first quarter, Pfizer purchased 22% of Bamboo for $43 million.

The Chapel Hill, N.C.-based Bamboo focuses on developing gene therapies for patients with rare disease related to neuromuscular and central nervous system conditions.

Gene therapy involves the injection of genetic material into a person's cells to treat or prevent a disease. The research stalled after some study participants died or developed cancer after receiving gene therapies in the late 1990s and 2000s.

Recently, however, the technology has been given another look.

In May, GlaxoSmithKline PLC's gene therapy cure for children born with an extremely rare condition that prevents them from developing a strong immune system was approved by the European Commission. It is only the second gene therapy to be sold in Europe, after UniQure NV's Glybera for a rare genetic condition in which the body can't break down fat molecules. No gene therapies are approved for sale in the U.S.

"The field of gene therapy research has made tremendous strides in recent years," said Mikael Dolsten, Pfizer's president of research & development. "We believe that gene therapy may hold the promise of bringing true disease modification for patients suffering from devastating diseases, and we hope to see this promise come to fruition."

The deal also includes a 11,000-square-foot manufacturing facility used for developing clinical trial materials.

Pfizer shares rose 1% to $37.26.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

August 01, 2016 11:55 ET (15:55 GMT)

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