Fate Therapeutics is buying Canada's Verio Therapeutics in a bid to expand its arsenal of tools for modulating stem cell behavior toward curative ends, the company said. Terms of the purchase weren't shared, but it puts two of Canada's top stem cell scientists, Michael Rudnicki and Lynn Arthur Megeney, in Fate's employ, adding their considerable experience in muscle and pancreatic regeneration to Fate's drug developments efforts.

Fate's core technology is aimed at discovering stem cell modulators, small molecule or biologic compounds that reprogram cells for therapeutic benefit. The San Diego, California-based company's lead candidate, FT1050, is a small molecule drug administered during a dual umbilical cord blood transplant to increase hematopoietic stem cell number and function in recipients with hematologic malignancies, such as leukemia and lymphoma.

 

Fate, which is privately held, landed $30 million in a second round investment in November 2009 led by OVP Venture Partners and including a syndicate of three corporate investors: Astellas Venture Management, Genzyme Ventures and a third undisclosed partner.

 

For Verio, being acquired offers a chance to move its “therapeutic programs into advanced pre-clinical and clinical testing for the treatment of major medical conditions, such as sarcopenia, diabetes and heart disease," says Verio CEO Frank Gleeson.

 

Ottawa-based Verio's pipeline includes candidates for promoting the growth of new insulin producing beta-cells to treat diabetes and for regenerating cardiac muscle cells following a heart attack.