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Vertex to acquire Semma Therapeutics for $950M

Vertex Pharmaceuticals Inc. is acquiring Semma Therapeutics Inc. for $950 million in cash in a deal that gives it access to cell-based therapies for type 1 diabetes.

Privately held Semma Therapeutics, based out of Cambridge, Mass., will become a separate operating subsidiary of Vertex and will continue to be headed by its existing President and CEO Bastiano Sanna. Semma Therapeutics's founder, Douglas Melton, will also continue in his role as chair of the company's scientific advisory board and provide oversight and guidance on the research and development of its programs.

Semma Therapeutics is exploring the use of stem cell-derived human tissues as a potentially curative treatment for type 1 diabetes, a chronic condition in which the pancreas produces little or no insulin — a hormone needed to allow glucose to enter cells to produce energy.

David Altshuler, Vertex's chief scientific officer and executive vice president of global research, said that unlike insulin injections and pumps, islet cell transplantation can provide physiologic regulation of blood glucose thereby potentially preventing episodes of both high and low blood sugar levels associated with the current standards of care.

Boston-based Vertex expects the acquisition to close in the fourth quarter, subject to certain conditions, including antitrust approvals. The biotechnology giant said it will provide any updates to its 2019 financial guidance with its third-quarter earnings release or upon closing the transaction, whichever occurs later.