Chromos Molecular Systems Inc of Burnaby, British Columbia, Canada, has announced that it will acquire Target Molecules Corporation of San Diego, California, a privately held biotechnology company with two preclinical stage antibody product candidates, including TMC-2003. Slated to be redesignated CHR-1103, TMC-2003 is a humanized monoclonal antibody directed to VLA-2, an alpha2beta1 integrin involved in maintaining inflammation. TMC-2003 has been shown to reduce inflammation in animal models of rheumatoid arthritis, inflammatory bowel disease, and multiple sclerosis (MS). Following the closing of the transaction, which is expected to take place by the end of 2005, Chromos intends to initially focus on the development of TMC-2003 for the treatment of acute episodes of relapse in relapse-remitting MS patients. Chromos expects to complete preclinical safety and toxicology studies and to file an Investigational New Drug application by the end of 2006.

Under the terms of the proposed acquisition, Chromos will purchase all outstanding shares of Target Molecules for approximately $740,000 cash, and acquire certain outstanding debt of the company. As a precondition of the merger, Chromos will complete a private placement led by Neuro Discovery Limited Partnership to raise between $6-10 million in financing.

A cellular engineering and therapeutics company with exclusive worldwide rights to the ACE (Artificial Chromosome Expression) System for engineering cell lines, Chromos has entered into partnerships with Pfizer Inc; Centocor, Inc; Becton, Dickinson and Company, and Cambridge Antibody Technology.

—A. Techman