You don’t often get excited about company mergers. That changed with today’s deal, especially if you have type 1 diabetes (T1D).
The announcement
Today, Vertex announced it is buying ViaCyte for $320 million in cash. This matters because both companies are developing stem cell therapies for people with T1D. Combining their efforts may speed up that work.
California Institute for Regenerative Medicine (CIRM) supported nine research programs with the company, including two clinical trials.
ViaCyte has been developing an implantable device that contains pancreatic endoderm cells. These cells mature over several months and become insulin‑producing islet cells, the same type destroyed by T1D.
Vertex uses a slightly different method. The company manufactures synthetic islet cells and injects them directly into patients.
Acceleration
In a news release, both companies said the deal, expected to close later this year, would help speed up this work. “VX‑880 has demonstrated clinical proof of concept in T1D, and acquiring ViaCyte will accelerate our goal of transforming, if not curing, T1D by expanding our capabilities and adding new tools, technologies, and assets to our stem cell programs,” said Reshma Kewalramani, MD, Chief Executive Officer and President of Vertex.
“ViaCyte’s commitment to finding a functional cure for T1D is shared by Vertex,” said Michael Yang, President and Chief Executive Officer of ViaCyte. “This acquisition will allow Vertex to use ViaCyte’s tools, technologies, and assets to advance multiple cell‑replacement therapy approaches for millions of people living with T1D worldwide.”
Dr. Maria Millan, CIRM’s President and CEO, says it is always gratifying to see a supported project keep advancing.
“We are delighted that Vertex and ViaCyte are combining their experience, expertise, and resources to develop a stem cell therapy for type 1 diabetes. At CIRM, we help de‑risk projects by giving promising research the support it needs to attract outside investment. We have supported ViaCyte’s work for many years, and that support helped lead to this deal. We believe this is good news for both companies and, we hope, even better news for everyone with type 1 diabetes.”