Opko Health to acquire Israel’s Prolor Biotech for $480 mn

Opko Health Inc has agreed to buy Israeli biopharmaceutical company Prolor Biotech Inc, in a $480 million stock deal, in order to expand its portfolio of specialty drugs.

The Miami-based biopharmaceutical and diagnostics company's move comes a week after it acquired a 10 per cent stake in Russian pharmaceutical company OAO Pharmsynthez for $90 million.

Ziona, Israel-based Prolor is a clinical stage biopharmaceutical company applying unique technologies, including patented CTP technology, primarily to develop longer-acting proprietary versions of already approved therapeutic proteins that currently generate billions of dollars in annual global sales.

The CTP technology is applicable to virtually all proteins.  In addition to its long-acting version of human growth hormone, which successfully completed a Phase II clinical trial, Prolor is also developing long-acting versions of Factor VIIa and Factor IX for hemophilia and a GLP-1/Glucagon dual receptor against peptide for diabetes and obesity. 

Prolor's long-acting version of human growth hormone, hGH-CTP, has successfully completed four clinical trials, including a Phase II trial in adults with growth hormone deficiency (GHD), and a Phase II trial in children with GHD is currently ongoing while Phase III trial in adults with GHD is planned to begin in the second quarter of 2013. 

Prolor's long-acting clotting factors for hemophilia, which is also based on its proprietary CPT technology, is in preclinical development stage. When attached to a therapeutic protein, CTP significantly extends the length of time the protein remains active in the body.

Opko Health said CTP was identified at Washington University in St Louis and is exclusively licensed to Prolor for all proteins and peptides, except for four endocrine proteins that are licensed to Merck.

One of these, the long-acting fertility drug Elonva, is already marketed by Merck & Co in Europe.

"This transaction is consistent with Opko's stated objective of broadening our portfolio of market-transforming therapies in selected specialty markets," said Dr Phillip Frost, Opko's chairman and CEO.

"We believe that Opko's track record of commitment to innovation and growth, along with its diversified portfolio of innovative therapeutic and diagnostic products, growing international presence, ongoing investments in commercial infrastructure and highly experienced management team make this combination an excellent fit for Prolor," said Shai Novik, president of Prolor.