Drug-maker Merck & Co has announced that it will buy biotechnology company SmartCells for $500 million.Merck has a significant presence in India.
In a statement, Merck said it has "entered into a definitive agreement under which Merck will acquire SmartCells".
Privately held SmartCells is developing a glucose- responsive insulin formulation for patients with diabetes. According to reports, diabetes affects 220 million people worldwide and its incidence is on the rise in both developed and developing countries, primarily on account of increasing obesity.
Under the terms of the deal, Merck will acquire all outstanding shares of SmartCells and in return, the biotech firm's shareholders will receive an upfront cash payment and be eligible for more payments if the company reaches certain performance milestones.
"Through the acquisition of SmartCells, we have obtained innovative technology that may enable us to develop glucose- responsive insulins. If this investigational technology is ultimately approved for use with patients, it could provide an important new therapy for the treatment of diabetes," said Nancy Thornberry, Merck Research Laboratories Senior Vice- President and Head - Diabetes and Obesity Franchise.
