Sept 3 (Reuters) - Vertex Pharmaceuticals Inc saidon Tuesday it would buy privately held Semma Therapeutics for$950 million in cash with an aim to develop potentially curativestem-cell based treatments for diabetes.
The deal represents Vertex's foray into a new treatmentspace, as the company typically develops treatments for cysticfibrosis, an inherited disorder that causes damage to the lungand digestive system.
"We see a substantial opportunity to transform the treatmentparadigm for type 1 diabetes, a specialty disease cared for byendocrinologists," said Vertex's Chief Executive Officer JeffreyLeiden.
Semma focuses on developing cell-based therapies that havebeen shown to control blood glucose levels in preclinicalstudies, and also develops a medical device to protect thesecells from being attacked by the body's immune system.
Vertex expects to close the acquisition in the fourthquarter this year.
Shares of Vertex were up 1.2% at $182.1 in light premarkettrading.(Reporting by Manas Mishra in Bengaluru; Editing by Arun Koyyurand Shinjini Ganguli)