Netherlands-based Kiadis Pharma has agreed to purchase Winter Springs-based biotech company CytoSen in a stock transaction that could reach nearly $70 million at the current stock price, which could mean new treatment options for cancer patients.
The sale is the largest biotechnology company purchase in Central Florida’s history. The only other company to come close was VaxDesign, which sold in 2015 for $60 million.
“This is exactly why the region has invested in biosciences,” says Robert Igarashi, co-founder of CytoSen. “It is so companies like ours could blossom.”
The terms of the sale include an upfront consideration of 1.94 million shares of Kiadis stock. Once the company accomplishes six clinical development and regulatory milestones, CytoSen’s owners will receive another 5.82 million shares. As of June 5, Kiadis’ shares were trading at 7.80 Euros, or $8.81.
The deal showcases the power of Central Florida’s economic development ecosystem, powered by years of dedicated partnerships led by UCF.
For Kiadis, the acquisition is an opportunity to bring two different types of cell-based immunotherapies together under one company. The result could potentially help cancer patients around the world.
“I am excited about this unique opportunity to bring NK cells and T cells together to benefit patients with devastating diseases,” adds Robert Friesen, chief scientific officer for Kiadis.
CytoSen’s journey began in 2016 when Alicja Copik, a researcher at UCF’s Burnett School of Biomedical Sciences, developed a nanoparticle, which stimulates natural cancer killing cells, increasing their ability to fight cancers.
When it came time to build a company to commercialize the technology for greater patient benefit, Copik, Igarashi and other co-founders formed CytoSen. CytoSen licensed the technology from UCF and entered the UCF incubation program.
“The UCF Business Incubator Program has been a very good vehicle to foster this company to its present form.” — Robert Igarashi, co-founder of CytoSen
“The UCF Business Incubator Program has been a very good vehicle to foster this company to its present form,” Igarashi says. “This was an early stage operation at the beginning, and they significantly helped us reach this major milestone.”
The company started at the Research Park Incubator and for the past two years was headquartered at the Winter Springs Incubator.
“This is an outstanding success story for the UCF Business Incubation Program,” says Carol Ann Dykes Logue of the UCF Research Park Innovation District. “While certainly this is an atypical accomplishment, this proves anything can be possible with a great product or service accompanied by a great business.”
The company plans to continue to operate out of the Winter Springs Incubator, providing economic impact to the east Seminole County community.
“Our programs are uniquely designed to help grow companies, allowing them to work together and prosper while continuing to grow the cities that partner with UCF on this program,” says Jerry Ross, president of the National Entrepreneur Center. “CytoSen’s success should help other companies in the biotechnology field in our program see the potential future and help them grow as well.”