Durham biotech startup backed by NovaQuest merges with public pharma firm

DURHAM – Aceragen, a Triangle-based biopharmaceutical company launched last year with a focus on rare illnesses and hopes to be the first to find a treatment for Farber disease, is merging with a publicly held pharmaceutical firm in an all-stock deal.

In a deal announced Wednesday after the stock markets closed, Aceragen and Idera Pharmaceuticals announced their merger. Idera trades on the Nasdaq under the symbol IDRA.

As part of the deal, John Taylor – the CEO OF Aceragen – will be the chief executive officer of the combined company, the firms announced. Vincent Milano, who had been Idera’s CEO, becomes chair of the combined company’s board.

“This is an important transition for Aceragen,” Taylor said in the announcement. “We are delighted to complement Aceragen’s exciting rare disease programs and dedicated team with financial resources, corporate structure, and people from Idera, better enabling us to deliver important therapies for patients living with rare diseases.”

Aceragen is backed by Raleigh-based NovaQuest, a private equity firm that traces its roots to Quintiles and which backed Aceragen in 2021 with $35 million.

The latest deal follows a November 2021 move in which Aceragen, which is developing therapeutics for rare and orphan diseases, acquired Arrevus, another Raleigh company with a similar focus.

Products in development include treatments for Farber disease, Cystic Fibrosis and Melioidosis

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“After a thorough evaluation of strategic alternatives, we and our Board of Directors believe this acquisition represents the highest potential value creation opportunity for Idera’s stockholders,” Milano said. “We are excited by the potential for Aceragen’s rare disease portfolio to result in meaningful therapeutic options for patients, and I am looking forward to being part of this new stage of Idera’s journey.”

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The post Durham biotech startup backed by NovaQuest merges with public pharma firm first appeared on WRAL TechWire.

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