Pharmaceutical company Pfizer has entered an agreement to acquire PowderMed, a privately held UK-based company specialising in the emerging science of DNA-based vaccines. PowderMed’s venture investors included Abingworth Management, Advent Venture Partners, Oxford Bioscience Partners and SV Life Sciences. PowderMed was advised in the deal by Lehman Brothers and Ashurst. Financial terms of the acquisition were not disclosed.

Rolf Stahel, chairman of PowderMed, refers to the company as ‘a great success story’. He adds: ‘Through the financial support of a syndicate of leading life science investors and an experienced management team, led by Clive Dix, PowderMed has made outstanding progress in the development of its pipeline of DNA-based vaccines as reflected in this deal reached with Pfizer.’

David Shedlarz, vice chairman of Pfizer, describes the acquisition as an example of a new approach the company is taking to business development.

‘With PowderMed’s novel DNA technology and its portfolio of early-stage vaccine candidates, we are adding high-potential, externally sourced product candidates and technologies to our research and development portfolio,’ Shedlarz says.

PowderMed has developed technology to deliver DNA directly to the cells of the body’s immune system and is advancing a pipeline of proprietary vaccine candidates for influenza and chronic viral diseases.

The acquisition is subject to customary closing conditions (including approval under the Hart- Scott-Rodino Antitrust Improvements Act of 1976), and is expected to close during the fourth quarter of 2006.