Cubist Pharmaceuticals pays $92.5M for Calixa

AP News
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Posted: Dec 14, 2009 7:59 AM

Cubist Pharmaceuticals Inc. said Monday it will pay $92.5 million in cash to buy biopharmaceutical company Calixa Therapeutics Inc. in a deal it expects to close this month.

Cubist said in a statement it will acquire the rights to develop and commercialize Calixa's lead compound, CXA-201, an intravenous treatment for serious bacterial infections. It also would obtain the same rights for products tied to another compound, CXA-101.

Under the deal, Cubist could be required to make payments of up to $310 million if it meets certain development, regulatory and commercial milestones related to products that incorporate CXA-101.

Cubist said the boards of each company have approved the agreements. No financing will be needed to complete the deal or to pay for the development of Calixa's potential products.