Circadian Technologies [ASX: CSR] is to acquire 100 per cent ownership of Vegenics as part of its strategy to transform Circadian from a biotech incubator to a full-scale drug development company.

Under the agreement, Circadian is to purchase the 33 per cent share owned by Vegenics co-founders the Ludwig Institute for Cancer Research and Licentia Limited.

Circadian will assume complete control of the rights to and development of Vegenics' VEGF technology.

In return, Circadian will give the Ludwig Institute and Licentia shares totalling 11 per cent ownership of the company, with more shares on offer once certain product development milestones are met.