Navigation Links
PharmAthene Closes Acquisition of Avecia Biodefense Vaccines Business Unit

Strategic Acquisition Creates Expanded Biodefense Pipeline

ANNAPOLIS, Md., April 2, 2008 /PRNewswire-FirstCall/ -- PharmAthene, Inc., (Amex: PIP) a biodefense company specializing in the development and commercialization of medical countermeasures against biological and chemical threats, announced today that it has completed its acquisition of Avecia's biodefense vaccines business previously announced on March 20, 2008.

David P. Wright, President and Chief Executive Officer, commented, "PharmAthene's mission is to become a leading provider of biodefense medical countermeasures that are needed by the U.S. government and its allies. We have advanced this mission by pursuing an acquisitive growth strategy focused on high priority, next generation biodefense products for which the government has expressed a clear need and an intent to procure. The acquisition of Avecia's biodefense vaccines addresses both of these aspects and adds important near-term value creation milestones to our calendar. With the addition of Avecia's vaccines, PharmAthene now has established an extensive biodefense portfolio targeting U.S. government requirements."

PharmAthene's biodefense portfolio now includes:

-- A recombinant Protective Antigen (rPA) anthrax vaccine

-- A recombinant dual antigen Plague vaccine manufactured in E coli

-- A third generation rPA anthrax vaccine program

-- Valortim(TM), a fully human monoclonal antibody being co-developed with

Medarex for the prevention and treatment of anthrax infection

-- Protexia(R) a novel bioscavenger to prevent and treat organophosphate

nerve agent poisoning

Under the agreement, PharmAthene has acquired all of the assets related exclusively to Avecia's vaccines business, including the intellectual property rights associated with its rPA anthrax vaccine and plague vaccine as well as certain government contracts related to such products having an estimated value of approximately $60 million. Approximately 50 employees from Avecia's vaccines operations have transferred to PharmAthene in connection with the transaction.

In consideration for these assets, PharmAthene has paid Avecia a cash payment of $10 million, which is subject to a post-closing working capital adjustment, and will pay an additional $7 million within eighteen months from the closing date. In addition, Avecia will be eligible to receive milestone payments totaling up to $23 million in the aggregate, contingent upon the achievement of certain milestones related to the award of contracts for development and procurement of Avecia's vaccine products by the U.S. government, and potentially royalties if certain sales levels are achieved.

In connection with the acquisition, the parties have also entered into various agreements for the transitional and longer-term supply of facilities, support and services by Avecia to PharmAthene. Among these agreements are a Master Services Agreement pursuant to which Avecia has agreed to provide process development, analytical development, production, disposition, and stability testing of vaccines for PharmAthene. Under a Supply Agreement, Avecia has agreed to manufacture and supply to PharmAthene its requirements for the rPA anthrax and plague vaccines.

On March 28, 2008, Avecia received a letter from the Defence Science and Technology Laboratory, a branch of the UK Ministry of Defence, advising Avecia of the recent resource allocation decision of the US Department of Defense (DoD) that the DoD had decided not to fund Avecia's plague vaccine candidate beyond the current contractual commitments. Based on this development, the parties agreed to amend the sale and purchase agreement, as set forth above, to accommodate the change in circumstances.

BroadOak Partners, LLC and Piper Jaffray Ltd. acted as financial advisors to PharmAthene and Avecia, respectively, in connection with the transaction.

rPA Anthrax Vaccine

Avecia's rPA vaccine, which has completed Phase II clinical testing, is a second generation rPA anthrax vaccine for use against human anthrax infection.

In February 2008, the Department of Health and Human Services (DHHS) issued a formal solicitation (Request for Proposals) for an Anthrax Recombinant Protective Antigen (rPA) Vaccine for the Strategic National Stockpile (SNS). The solicitation outlines a requirement to procure 25 million doses of an rPA anthrax vaccine.

"There is currently an unmet need for a second generation anthrax vaccine that offers the potential for improved safety and convenience," said Mr. Wright. "We believe Avecia's vaccine is well positioned to meet this requirement, as it is a highly purified recombinant form of a single protein -- protective antigen (PA), which is produced using standard biotechnology processes. In preclinical and clinical studies the vaccine was shown to produce a vaccine-induced antibody response and was safe and well tolerated. If these results are confirmed in future studies, we believe this vaccine could prove to be a superior choice for procurement in the Strategic National Stockpile for civilian defense against anthrax threats."

About PharmAthene, Inc.

PharmAthene (Amex: PIP) was formed to meet the critical needs of the United States and its allies by developing and commercializing medical countermeasures against biological and chemical weapons. PharmAthene's lead programs include Valortim(TM) for the prevention and treatment of anthrax infection and Protexia(R) for the prevention and treatment of morbidity and mortality associated with exposure to chemical nerve agents. For more information about PharmAthene, please visit

Forward Looking Statement

Except for the historical information presented herein, matters discussed may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements preceded by, followed by, or that include the words "potential"; "believe"; "anticipate"; "intend"; "plan"; "expect"; "estimate"; "could"; "may"; "should"; "could"; or similar statements are forward-looking statements. PharmAthene disclaims, however, any intent or obligation to update these forward-looking statements. Risks and uncertainties include the likelihood that the U.S. government will choose to procure any products from the Company, the successful development of any of PharmAthene's potential products, the advancement of PharmAthene's strategy, its ability to expand its business to meet US government requirements, or its ability to enhance the timelines or opportunity for success of its programs, the ability of the rPA based anthrax vaccine to meet any stated government requirements or be a viable choice for the Strategic National Stockpile as well as risks detailed from time to time in PharmAthene's public disclosure filings with the U.S. Securities and Exchange Commission (the "SEC"). There can be no assurance that PharmAthene's development efforts will succeed or that developed products will receive required regulatory clearance, or that, even if such regulatory clearance were received, such products would ultimately achieve commercial success or be procured by the government. Copies of PharmAthene's public disclosure filings are available from its investor relations department.

SOURCE PharmAthene, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. PharmAthene Reports Year-End 2007 Financial Results
2. Department of Defense Awards $5.8 Million Contract Modification Providing Additional Funding for PharmAthenes Protexia(R) Program
3. PharmAthene Year-End 2007 Earnings Conference Call and Webcast Scheduled for Monday, March 31, 2008
4. PharmAthene to Delay Release of Full Year 2007 Financial Results
5. PharmAthene Signs Definitive Agreement to Acquire Biodefense Vaccines Business From Avecia
6. PharmAthene to Present at the Cowen and Company 28th Annual Health Care Conference
7. PharmAthene Completes Pharmacokinetic Studies of Protexia(R); Program on Target for IND Filing in 2008
8. PharmAthene Enhances Executive Leadership Team and Appoints Joan Fusco, Ph.D. Senior Vice President of Operations
9. PharmAthene to Present at the BIO CEO & Investor Conference 2008
10. Delaware Court Denies Motion by SIGA Technologies Seeking to Dismiss PharmAthenes Legal Action in Breach of Contract Lawsuit Against SIGA
11. PharmAthene Named as Contractor in $13.9 Million Award Notice Published by the Department of Health and Human Services
Post Your Comments:
(Date:11/24/2015)... Halozyme Therapeutics, Inc. (NASDAQ: HALO ) will be presenting at ... on Wednesday, December 2 at 9:30 a.m. ET/6:30 a.m. PT ... provide a corporate overview. th Annual Oppenheimer Healthcare ... ET/10:00 a.m. PT . Jim Mazzola , vice president ... --> th Annual Oppenheimer Healthcare Conference in ...
(Date:11/24/2015)... , Nov. 24, 2015  Clintrax Global, Inc., a worldwide ... Carolina , today announced that the company has set a ... a 391% quarter on quarter growth posted for Q3 of 2014 ... and Mexico , with the establishment of ... December 2015. --> United Kingdom and ...
(Date:11/24/2015)... November 24, 2015 --> ... research report released by Transparency Market Research, the global ... a CAGR of 17.5% during the period between 2014 ... - Global Industry Analysis, Size, Volume, Share, Growth, Trends ... prenatal testing market to reach a valuation of US$2.38 ...
(Date:11/24/2015)... , ... November 24, 2015 , ... InSphero AG, the ... cell culture models, has promoted Melanie Aregger to serve as Chief Operating Officer. ... served on the management team and was promoted to Head of InSphero ...
Breaking Biology Technology:
(Date:11/4/2015)... November 4, 2015 --> ... report published by Transparency Market Research "Home Security Solutions Market ... Forecast 2015 - 2022", the global home security solutions market is ... by 2022. The market is estimated to expand at ... 2015 to 2022. Rising security needs among customers at ...
(Date:10/29/2015)... , Oct. 29, 2015  Rubicon Genomics, Inc., ... U.S. distribution of its DNA library preparation products, ... Rubicon,s new ThruPLEX Plasma-seq kit. ThruPLEX Plasma-seq has ... preparation of NGS libraries for liquid biopsies--the analysis ... and prognostic applications in cancer and other conditions. ...
(Date:10/27/2015)... -- Munich, Germany , October ... automatically maps data from mobile eye tracking videos created ... that they can be quantitatively analyzed with SMI,s analysis ... , October 28-29, 2015. SMI,s Automated Semantic Gaze ... tracking videos created with SMI,s Eye Tracking Glasses ...
Breaking Biology News(10 mins):