Merger

Inovio merging with VGX to work on DNA vaccines

John Carroll — Tue, 08 Jul 2008 11:14:05 -0400

DNA vaccine delivery company Inovio Biomedical is merging with DNA vaccine developer VGX Pharmaceuticals. Inovio is issuing new shares for the deal, which should close before the end of the year. The combined company, which will be called VGX, will join forces behind a pipeline of DNA vaccines. After the reverse merger is complete, Inovio says that most of its 50 workers in San Diego will stay on there, working in R&D. VGX is based in Blue Bell, PA.

The acquisition gives VGX a complementary technology. VGX's DNA vaccines consist of large molecules that have difficulty entering cells while Inovio has the technology to facilitate that process.

"Merging with VGX Pharmaceuticals immediately adds a broad pipeline of DNA vaccine candidates and a team of internationally recognized scientists with strong DNA vaccine expertise, which we believe will provide the combined company with the capability to rapidly advance DNA vaccine candidates into the clinic," said Inovio CEO Avtar Dhillon.

- here's the release
- read the AFX report

Invitrogen, Applera agree on $6.7B merger

John Carroll — Thu, 12 Jun 2008 10:54:14 -0400

Two big suppliers to the drug development business are merging. Invitrogen has agreed to acquire all of the shares of Applera's Applied Biosystems in a $6.7 billion cash and stock deal. The Invitrogen/Applera combo--to be called Applied Biosystems--will have $3.5 billion in annual sales and will be based in Carlsbad, CA. The companies say they'll be able to shave $125 million in costs following the merger. In a release, the company said it would hold a major presence in key areas like genetic analysis, proteomics, cell biology and cell systems.

"This transaction combines the industry's premier consumables provider with the industry's premier systems provider to create a world-class biotechnology tools company," said Invitrogen CEO Gregory Lucier. "With this acquisition, we are nearly doubling our consumables business as almost half of Applied Biosystems's revenues are consumable in nature. It also provides significant value creating opportunities for customers, shareholders and employees alike."

- check out the merger release
- read the report from SoCalTech

Gen-Probe bids $334 for Innogenetics

Tue, 03 Jun 2008 06:59:58 -0400

In a bid to create the world's largest stand-alone molecular diagnostics company, San Diego-based Gen-Probe has launched a $334 million cash bid for Belgium's Innogenetics. That's a seven percent premium over the June 2nd close and a six percent premium over a bid by Solvay. Gen-Probe says that if its bid is successful, the combined company will have more than a half billion dollars in annual revenue. A spokesman for Solvay says the company is aware of the counter-offer and will make its position known "in due time."

A merger with the European firm would give Gen-Probe a presence on the continent, where the diagnostics business has been growing at a more rapid pace than in the U.S.

- here's the release
- read the AFX report

Biotechs merge to form Aduro BioTech

Tue, 03 Jun 2008 06:59:54 -0400

Berkeley, CA-based Oncologic has merged with Triton BioSystems into a new developer named Aduro BioTech. The combined biotech will focus on developing iron oxide nanoparticles to attack solid tumors. The particles are heated by a magnetic field, killing tumor cells. A spokesman for Aduro told the San Francisco Business Times that Dartmouth researchers will handle much of the early research work. Stephen Isaacs, who founded Cerus, is CEO of Aduro, which has a staff of nine. The report says Aduro has completed a first round of venture capital but declined to say how much money was raised.

- see the merger release
- read the story in the San Francisco Business Times

Sonus, OncoGenex to merge

Wed, 28 May 2008 06:59:58 -0400

Bothell, WA-based Sonus Pharmaceuticals is merging with Canada's OncoGenex Technologies and will operate under the name OncoGenex Pharmaceuticals. OncoGenex's CEO Scott Cormack will head up the new company.

Sonus has been struggling since September when it pulled the plug on its lead therapy for breast cancer. Since then the company said it has been looking for ways to rebuild shareholder value. A merger with OncoGenex was the best way to do that, CEO Michael Martino said in a release.

The combined company has a strong oncology pipeline with three candidates in various stages of clinical development. Its lead candidate, OGX-011 for prostate cancer, is being evaluated in five Phase II clinical trials.

- see the merger release

Report: Wilex, GPC nearing merger pact

Wed, 07 May 2008 06:59:58 -0400

Two German biotech companies which share a very big investor are preparing to merge, according to a prominent German newspaper. Wilex and GPC Biotech, both involved in developing new cancer therapies, are each backed by SAP founder Dietmar Hopp. Analysts say that a merger would suit both biotechs. GPC is well funded but doesn't have the late-stage therapeutics that investors love, while Wilex has a compelling late-stage project for kidney cancer. GPC's satraplatin recently failed in a clinical trial, adding to its motivation to merge.

The companies, though, aren't talking about any of it. Complicating the rumors: A third Hopp-based biotech--Heidelberg Pharma--has also been touted as a potential partner for GPC and Wilex. Hopp owns 15 percent of GPC, 28.52 percent of Wilex and 75 percent of Heidelberg. Wilex was a 2005 Fierce 15 company.

Just days ago GPC announced a new round of layoffs, with some of its top execs headed out the door.

- read the AFX report

SPOTLIGHT: Mystery Mistral merger is off

Wed, 07 May 2008 06:59:53 -0400

Canada's Mistral Pharma says its proposed merger with an unnamed U.S. specialty pharma company will not be completed. As a result, its bridge financing deal has been canceled and management has responded with "temporary layoffs" as it conserves cash and explores strategic alternatives. Three of its directors have resigned. Release

Struggling VaxGen sells anthrax vaccine to rival

Mon, 05 May 2008 06:59:57 -0400

After spending $175 million in an unsuccessful effort to push a new anthrax vaccine into the clinic, VaxGen has sold the program to Emergent BioSolutions for $2 million. VaxGen also stands to earn $8 million in milestones and an unspecified portion of any sales. Emergent, once VaxGen's bitter rival, believes the problems with the vaccine candidate have been sorted out and is a prime contender for a new government contract. VaxGen's vaccine program is also further advanced than any of the experimental vaccine programs Emergent is advancing.

The Washington Post points out that Emergent's competitive position shifted significantly after PharmAthene bought the rights to a next-gen anthrax vaccine developed by Avecia, making it a contender for a government contract to supply 25 million doses.

The deal for just pennies on its research dollar marks another bitter turn for VaxGen, which is now being operated by a skeleton crew in the wake of a failed merger. Last month VaxGen axed 75 percent of its remaining 22 workers.

- here's VaxGen's release on the deal
- read the article in the Washington Post

Critical Therapeutics, Cornerstone to merge

Fri, 02 May 2008 06:59:54 -0400

Critical Therapeutics is merging with Cornerstone BioPharma Holdings, a specialty pharmaceutical company that develops treatments for respiratory disorders. Critical Therapeutics is also developing respiratory drugs, along with inflammatory and critical care treatments. Trevor Phillips, Critical's CEO, said the new company would be focused on respiratory diseases.

"After reviewing alternatives during a strategic review process over the past six months, we believe that the product synergies created by a merger with Cornerstone offer the best opportunity to drive stockholder value," said Phillips. The stock-for-stock transaction is targeted to close in the fourth quarter of 2008.

- here's the merger release

Struggling VaxGen goes skeletal with cutbacks

Wed, 09 Apr 2008 06:59:56 -0400

With its planned merger involving Raven Biotechnologies on the rocks, a struggling VaxGen is cutting down to a skeletal staff, laying off 70 percent of its remaining 22 employees. Among the departing staffers is CFO Matthew Pfeffer. In a statement the developer said that its immediate future "is quite straightforward: reduce staffing and expenses to reflect the realities of not merging with Raven, continue our efforts to sell the Anthrax vaccine program and manufacturing facility and deal as best we can with our lease obligations, and importantly, reconfigure our board to deal with the future course of the company."

VaxGen has been grappling with the loss of a crucial $877 million contract to supply the U.S. government with an anthrax vaccine. The developer has been steadily paring back staff in the wake of that disaster.

- here's VaxGen's release
- read the story in the San Jose Business Journal

Related Articles:
Shareholders stymie VaxGen, Raven merger
VaxGen shutters program, axes staff in second retrenchment
VaxGen misses federal deadline on anthrax vaccine
US cancels VaxGen's $877M vaccine contract
VaxGen slashes staff--again

Icahn: Biotechs must merge with Big Pharma

Thu, 07 Feb 2008 06:59:58 -0500

Biogen Idec CEO Jim Mullen (photo) is no wilting violet. When no Big Pharma companies stepped up to the plate to offer him what he thought the company was worth, he spurned them as too timid. And now that Carl Icahn--the bane of corporate CEOs who have drawn his ire--has criticized the biotech for not doing enough to sell the company, Mullen's not backing up an inch. "Monday morning quarterbacking" is how he describes Icahn's complaint. Biogen did serious buyout reviews twice in a month, he says, and no serious offer was to be had. But that's not enough to appease Icahn. "I think a lot of these biotechs have to merge with Big Pharma," he said on CNBC. "This [Biogen Idec] is one of them."

- read the report from the Boston Globe

Related Articles:
Icahn aims for Biogen control. Report
Biogen CEO spells out interest in biotech buyout. Report
Biogen CEO: Pharma too wimpy to deal. Report
Biogen shares deflate as it gives up on sale. Report
Efficient drug programs demand partners, outsourcing. Report

Viventia considers sale/merger in strategic review

Tue, 29 Jan 2008 06:59:56 -0500

Viventia Biotech is also going the way of the strategic review, promising to consider its sale or merger options as it advances new antibody therapies for cancer. HSBC has been brought in to advise the company.

"We have successfully advanced three antibody programs into clinical trials, and are about twelve months from expected final efficacy data for our pivotal Phase III TARGET trial of Proxinium. We believe that our recently performed interim efficacy analysis of survival data from TARGET strongly supports the future prospects for this drug. In addition to our clinical programs, we have generated a broad pipeline from our antibody discovery platform, which has yielded a number of compelling novel targets, including several that have expression profiles consistent with cancer stem cells, an exciting new area of cancer research," said Dr. Nick Glover, Viventia's president and CEO. "We believe it is important to explore all options to ensure adequate resources are available for the advancement of our products through to commercialization and to further recognize the value of our proprietary discovery platform."

- check out the press release

Dealmaking stays big even as the markets tremble

Wed, 02 Jan 2008 06:59:56 -0500

The credit crunch could play a miserly role in hobbling biotech, but I have yet to see it. As long as big pharma sees its future in biologics, you can expect to see investors laying their bets to benefit from that trend. The JP Morgan meeting in January is a reliable harbinger of the level of excitement surrounding deal-making in biotechnology. That event is still a few days away, but the strong buzz around the meeting is a positive sign that 2008 will go down as a good year in the industry.

There is no indication, though, that the stock market will play a major supporting role in the near term. Unfortunately, a chilly Wall Street for IPOs--and no one can reliably predict when that will come to an end--can only make merger options even more attractive. Some great biotech companies in the making will be bought out and blended into pharma, and they're likely to lose some of the aggressive thinking and planning that has dramatically defined the differences between large and small in this business.

The venture groups, meanwhile, are all sounding suitably bullish. If investors keep jumping into new funds, there will be more money available for players--particularly in the U.S.

Related Articles:
Billion-dollar baby: Biotech still on a roll with VC funds. Report
Deal-making hits a faster pace in '07. Report
Burrill bullish on M&As. Report
Should Pharma take the M&A cure? Report
M&A activity heats up as biotech IPOs struggle. Report

Merck chief defines the perfect biotech buyout

Thu, 13 Dec 2007 06:59:54 -0500

Just before Biogen Idec announced it was out of the merger business, for the present, Merck's CEO was telling the Wall Street Journal that it had no interest in buying the biotech company. What it would like to buy, said CEO Richard Clark (photo), is a biotech company with about $2 billion to $5 billion in sales and a pipeline in sync with Merck's research interests. Hmm. And by the way, he added, Merck has no beef with the FDA. Even as others see the agency tightening up after the Vioxx debacle, Merck has counted seven approvals in the past two years. "It's difficult to say that the FDA has changed their approach."

- check out the report from the Wall Street Journal

ALSO: Merck recalled more than a million doses of Hib vaccine, shots given to kids under five to prevent hepatitis, pneumonia, and other infections. Report

Related Articles:
Merck presents pipeline update to analysts. Report
Merck, GTx ink $477M deal. Report
Merck faces fierce debate on OTC statin. Report

Nabi explores "strategic alternatives"

Thu, 06 Dec 2007 06:59:56 -0500

Nabi Biopharmaceuticals has approved the repurchase of up to $65 million of the company's outstanding common shares in the open market or in privately negotiated transactions. The company said its pursuing the action in order to benefit shareholders.

What else is it doing to benefit shareholders? Exploring strategic alternatives, according to a release. "These future alternatives may include, but are not limited to, licensing or development arrangements; joint ventures or strategic alliances; the sale or merger of all or part of the company; and additional share repurchase programs or other distributions to our shareholders." Earlier this week the drug developer closed a $185 million sale of its biologics unit to Biotest. Times have been turbulent at Nabi. This year er the company cut 33 jobs and CEO Thomas McLain resigned shortly after reportedly working out a deal to accommodate a hedge fund investor that had been harshly critical of his performance.

- see Nabi's release

Related Articles:
Nabi axes 33 jobs in restructuring. Report
Nabi CEO walks after hedge fund balks. Report
Nabi vows to push ahead with vaccine work. Report
Nabi's StaphVax fails late-stage study for infections. Report
Hedge fund blasts Nabi management, demands sale. Report

SPOTLIGHT: Nycomed to acquire Bradley Pharma

Tue, 30 Oct 2007 07:59:53 -0400

Nycomed is building up its dermatology operations with its deal to buy Bradley Pharmaceuticals. Executives involved in the merger say that the acquisition--at $20 a share--will position Nycomed to in-license and co-promote dermatology products. Paul McGarty, CEO of Nycomed US added: "This brings together the strengths of both companies with the objective of creating a leading specialty pharmaceutical player in dermatology." Release

DEALS: Blackstone Group buys Cardinal Health unit for $3.3B

Wed, 31 Jan 2007 19:01:32 -0500

Blackstone Group buys Cardinal Health unit for $3.3B

DEALS
WHO	WITH	WHAT	SCOOP
Cardinal Health	Blackstone Group	$3.3B sale	Cardinal Health has struck a deal to sell its pharmaceutical technologies and services business to the Blackstone Group.
MDS	Molecular Devices	$615M buyout	MDS plans to combine Molecular Devices--which makes software and systems for researchers engaged in biochemical testing and cellular analysis--with MDS Sciex.
AstraZeneca	Argenta	$521M development deal	Argenta will work with AstraZeneca on a therapy for chronic obstructive pulmonary disease.
AstraZeneca	Palatin Technologies	$310 development deal	Palatin Technologies is developing obesity drugs.
Hikma	Ribosepharm	$45M buyout	Ribosepharm markets injectable generic oncology drugs.
Health Acquisition Corp.	PharmAthene	Merger	PharmAthene is going public through a merger with Health Acquisition Corp.
PsychoGenics	Amylin Pharmaceuticals	Merger	PsychoGenics and Amylin Pharmaceuticals have formed Psylin Neurosciences, a new company that will focus on the discovery and development of peptide hormones for treatment of psychiatric disorders.
Quotient BioResearch	HFL	Acquisition	Quotient BioResearch announced its launch with the acquisition of HFL, a UK-based firm that provides research and development support to pharmaceutical and biotech companies.
Pfizer	MediVas	Development deal	MediVas has teamed with Pfizer to develop new therapies for eye diseases. The pact will combine MediVas work in polymers with Pfizer's compounds.

PharmAthene to go public through merger

Sun, 21 Jan 2007 19:01:35 -0500

PharmAthene is going public through a merger with Health Acquisition Corp. PharmAthene shareholders will gain 52 percent of the shares in the combined company, which will continue under the PharmAthene name. The company will have about $70 million once the deal closes, which will be used to fund new product development, R&D and clinical trials. PharmAthene has been developing new antidotes for biodefense programs. The boards of both companies have signed off on the deal.

"We are seeking to apply the classic defense contractor model of developing multiple government customers--defense, homeland security, state and regional authorities--and then adapting our products for wider commercial use," says David P. Wright, CEO of PharmAthene. "Biodefense products should be available to all levels of government, large venues, commercial offices, hotels, hospitals and even to individual consumers, and we intend initially to develop and commercialize products for all of these markets while evaluating dual-use applications for our products within broader commercial markets."

- see the company's release on the merger
- read the AP report

ALSO: Chinese biotech 3SBio has filed to go public in an IPO designed to raise up to $123 million. Much of that is earmarked for R&D and clinical trials. Report

Related Articles:
Siga Technologies, PharmAthene to merge. Report
EMEA panel recommends goat-milk therapy. Report

Seradyn looks to expand following merger

Tue, 28 Nov 2006 19:01:34 -0500

The Indianapolis Star profiles Seradyn, a biotech company acquired in the recent Fisher Scientific/Thermo Electron merger. The life sciences company, which makes drug testing products, says it plans to expand its operations and hire new staff. President Mark Roberts says he plans to add 10 to 15 workers in the lab and raise the company's profile.

- here's the profile from the Indianapolis Star

Related Article:
Thermo Electron buys Fisher Scientific International for $10.6B. Report

Kiadis to merge with Canada's Celmed

Mon, 27 Nov 2006 19:01:37 -0500

The Dutch biotech Kiadis and Montreal-based Celmed BioSciences say they will merge operations, both of which are focused on new oncology therapies. The merged company will operate as Kiadis Pharma with headquarters in the Netherlands and operations in Canada and Europe. Financial details were kept under wraps.

The new Kiadis Pharma "has exceptionally strong credentials in oncology with over five years of clinical patient data that allows us to further strengthen our products and accelerate development," said Manja Bouman, CEO of Kiadis BV.

- check out the press release on the merger