Roche Holding will license cancer drugs from Antisoma in a deal that could earn the cash-strapped British biotech group over $500 million.
Swiss-based Roche, which bills itself as the world's top maker of cancer drugs, will also acquire a stake of nearly 10 per cent in Antisoma for $6.56 million.
The accord, which nearly doubled Antisoma's share price, highlights Roche's growth strategy of passing over big takeovers in favour of licensing in more outside products to fill a gap in its own drug development plans.
Antisoma - whose shares leapt 94 per cent to 24.6 pence, valuing it at around £50 million sterling - is one of a number of European biotech companies with interesting drugs in development but little cash in the bank.
It posted a pre-tax loss of £13.2 million in the year to June 30th, leaving it with just £18.9 million in reserves.
With the equity market hostile and investors reluctant to put new money into high-risk projects, small biotech companies are under increasing pressure to seek partnerships with rich big pharma players or make mergers with other biotechs.