London, 12 January, 2006 – Morrison & Foerster’s London office is advising the shareholders of KuDOS Pharmaceuticals Limited, a privately-owned UK biotechnology company focused on the discovery and development of oncology therapies based on the inhibition of DNA repair, in relation to the acquisition of KuDOS by AstraZeneca.  Under the terms of the deal announced on 23 December 2005, the total share capital of KuDOS will be purchased for $210m cash, subject to debt and working capital adjustment. The transaction is expected to close early in 2006. 

Corporate partner James Gubbins, who led the transaction for Morrison & Foerster, commented, "This promises to be a very successful transaction for all parties: it brings the KuDOS scientists to the considerable resources of AstraZeneca; shows how large pharma companies can strengthen their pipelines of products by investing in biotechs; and it will provide excellent returns for the founders, investors and shareholders of KuDOS".

Other members of the corporate team were Bradley Theobald, Louis van Aardt and Mark O'Donnell. They were supported by tax partner Trevor James and employment of counsels David Warner and Ann Bevitt, while commercial specialists Julian Thurston and James Ryan provided life sciences expertise.

The Morrison & Foerster team was instructed on the sale because of their longstanding involvement with KuDOS and deep relationships with the life sciences investment community.  Julian Thurston has advised KuDOS since it was founded by what is now called Cancer Research Technology in 1997, and the firm’s London-based corporate team has a commanding track record of handling M&A exits.

The acquisition of KuDOS strengthens AstraZeneca’s portfolio of promising cancer treatments and demonstrates its commitment to discover, develop and bring to market innovative therapies.

This transaction provides AstraZeneca with a widely-recognised expert group and technology platform in an area of research that complements internal capabilities in oncology, one of the company’s key therapy areas. The DNA repair platform developed by KuDOS Pharmaceuticals, in association with its founder Professor Stephen Jackson of Cambridge University, includes several different approaches towards inhibition of enzymes involved in the responses to various types of DNA damage. DNA repair inhibitors have the potential to kill cancer cells either as stand-alone therapy or by enhancing the efficacy of chemo- and radio-therapies.

The acquisition of KuDOS Pharmaceuticals augments AstraZeneca’s portfolio with clinical and pre-clinical compounds and programmes. An innovative, targeted compound, KU 59436, an oral poly-ADP-ribose polymerase (PARP) enzyme inhibitor, is currently in phase I clinical development.