Merck to Acquire GlycoFi & Abmaxis

Merck to Acquire GlycoFi & Abmaxis

Merck to Acquire GlycoFi & Abmaxis

Merck & Co. agreed to acquire GlycoFi Inc., a closely held Lebanon, N.H., biotechnology firm, for about $400 million.

The purchase announcements came two weeks after the company's chief executive, Richard T. Clark, promised shareholders big changes to Merck, which has been wounded in litigation over heart problems caused by its pain medication Vioxx.

The Whitehouse Station, N.J., company said GlycoFi is involved in yeast glycoengineering and optimization of biologic drug molecules, and the companies have partnered since late 2005. Merck expects the deal to close in the second quarter.

GlycoFi was founded in 2000 and has about 55 employees. Its investors include Polaris Venture Partners, SV Life Sciences, Boston Millennia Partners, and Fletcher Spaght Ventures.

Separately, Merck agreed to pay $80 million for closely held Abmaxis Inc., a Santa Clara, Calif., developer of monoclonal antibody products for therapeutics and diagnostics. Abmaxis was founded in 2000. Merck established a collaboration agreement with Abmaxis in late 2004.

Shares of Merck fell 2 cents, to $34.43.