Tepnel acquire Diaclone Research

The purchase is a move on Tepnel's part to expand its portfolio of diagnostic and service offerings to the pharmaceutical and biotechnology companies' drug discovery efforts in Europe and the United States.

On a strategic level the forging of strategic alliances between biotech and pharma companies makes good business sense. With monetary resources at their disposal, pharmaceutical companies have been crucial to later-stage development and successful marketing of novel MAbs.

For biotech companies, collaborations with pharma companies set the stage not only for further increases in investment but can also cause regulatory bodies to look more favourably on the product.

Under the terms of the agreement, Tepnel​ is to pay €2.37 million to acquire Diaclone Research from OPi assuming control of its facilities based in Besançon, France. As an inducement Tepnel has also paid a non-refundable instalment of €250,000 to Opi. The transaction is to be completed before 31 October 2004.

Ben Matzilevich, chief executive officer of Tepnel said: "This marks the next stage in our strategic corporate development and further expansion of our diagnostic and service offerings."​

Diaclone Research produces and customises MAbs, complimentary reagents and diagnostic test kits. These MAb's are used in a variety of laboratory tests, including ELISA, Eli spot, flow cytometry, cell sorting, tissue staining and functional assays. Amongst the principal benefits of MAbs is their ability to target specific cells or chemical mediators that could be involved in disease causation.

Gilles Alberici, president, CEO and founder of Opi said: "Since Opi is focusing its activities on therapeutic agents and monoclonal antibodies for rare and severe diseases, we were seeking a company to acquire the non-therapeutic assets of our group."​

"Diaclone Research's monoclonal antibody production offers natural synergies in this area."​

According to strategic market consultants Frost and Sullivan, more focused targets coupled with significant advances in genetic engineering are driving interest in therapeutic monoclonal antibodies

The total therapeutic monoclonal antibodies market was estimated at $296 million (€246 million) in 2002, and is projected to surge to $2.8 billion by 2010. A flurry of product launches and high treatment price is expected to underpin the highest growth potential of the autoimmune and inflammatory disorders segment. MAbs indicated for the treatment of rheumatoid arthritis and Crohn's, in particular, are poised to drive revenue growth.

While this situation has provided impetus to MAbs, market success will depend on clearly demonstrating their clinical benefits as well as rationalising high costs. The price of currently available monoclonal antibody therapies is far higher than that of conventional drug treatments, but is comparable to other novel therapies with similar indications.