Constellation Pharma Plots IPO Run As Genentech Passes on Buyout Deal
Summary
Constellation and Genentech signed a deal in January 2012 to work together to develop epigenetic drugs, which are meant to switch genes on or off without changing the underlying DNA.Constellation got a fat $95 million check up front, research support over the next three years, and potentially even more in the form of downstream milestone payments and royalties for any products to come out of the alliance.FierceBiotech first reported back in January that the three-year collaboration between the two firms had come to and end and that Constellation had laid off some of its staff, prepping itself for Genentech to pass on the buyout option.Constellation, however, wanted to go bigger and develop a broader portfolio of drugs, including some preclinical programs it believed in that would’ve been shelved if the acquisition went forward.Third Rock founded Constellation in 2008 and has joined with a number of investors, among them The Column Group, Venrock, and SR One (the VC arm of GlaxoSmithKline) to put $70 million into the company.