A biopharmaceutical company headquartered in San Diego aims to grow its presence in Durham after acquiring a Duke University spin-out.
Venture-backed Solve Therapeutics has acquired Cereius, a preclinical stage company co-founded by Duke professor Michael Zalutsky and former professor Kimberly Blackwell.
Solve, which announced its launched in late 2022, was formed to develop cutting-edge targeted oncology therapeutics, said CEO Dave Johnson in an email to Triangle Business Journal. Prior to Solve, Johnson led Acerta Pharma, which AstraZeneca (Nasdaq: AZN) acquired in 2016 for $7 billion, and later VelosBio, which Merck (NYSE: MRK) acquired in 2020 for $2.8 billion.
Financial details of the Cereius deal were not released.
Johnson said Solve was interested in Cereius because its platform "offers the potential to develop whole-body, contemporaneous imaging for patient selection in conjunction with the development of SolveTx targeted treatments." Additionally, the technology "provides improved methods for safely and selectively delivering potent, tumor-destroying radionuclides to cancers, potentially offering new therapeutic options for oncology patients."
Zalutsky and Blackwell formed Cereius around technology initially developed at Duke and further advanced by the company's research team. Cereius, which raised about $6 million in 2018, has focused on developing targeted radiodiagnostics and radiotherapeutics for cancer patients.
As part of the deal, Solve is making an undisclosed upfront payment to Cereius shareholders, who are also eligible to receive additional development, regulatory and commercial milestone payments. Additionally, the company's shareholders could receive potential royalties on net sales from therapeutic and diagnostic products that Solve successfully commercializes.
Solve Therapeutics plans to continue building a presence in the Triangle. The company has leased more than 4,500 square feet of laboratory space at the BioLabs N.C. Gradlab building in downtown Durham to support research and development activities. Johnson said the company aims to make additional investments to expand infrastructure through internal growth and external partnerships.
Solve's team in Durham is led by senior vice president Jeffrey Schaal, who has been part of the Cereius team during the past few years. Johnson said the company is planning to expand its Durham-based team to at least six scientists and support staff. This team in Durham will continue refining the chemistry platform Cereius is developing.
"They will be primarily responsible for translational research and development in support of clinical trials and commercialization of innovative next-generation, targeted radiodiagnostics and radiotherapeutics for patients with cancer," Johnson said.
Solve was well-funded at launch, with an initial $126 million Series A financing round that included investments from Matrix Capital Management, Decheng Capital, General Atlantic and Surveyor Capital/Citadel. When Solve announced its launch in December, the company had more than 25 employees and a 10,000-square-foot laboratory in San Diego.
