Biomira Announces Acquisition of ProlX Pharmaceuticals
Biomira Inc. announced that it has acquired ProlX Pharmaceuticals Corporation, of Tucson, Arizona, and Houston, Texas, a privately-held biopharmaceutical company focused on the development of novel therapeutics for the treatment of cancer. ProlX is developing small-molecule drugs that inhibit redox and cell-survival signaling proteins.
The acquisition shall give Biomira a broadly-based portfolio of oncology products, including one product candidate expected to enter phase 3 by year end (Stimuvax(R)), one product expected to enter phase 2 in the current quarter (PX-12), and two products expected to begin clinical trials over the next 6 to 12 months, as well as several additional pre-clinical candidates.
Promptly following closing Biomira will pay U.S. $3 million in cash and approximately 17,878,000 shares of Biomira common stock (subject to certain resale restrictions) in return for all of the outstanding stock of ProlX. In addition, and subject to applicable regulatory requirements, there may be up to three future payments based on the achievement of specified milestones. A payment in Biomira common stock (with registration rights) of U.S. $5 million is due upon the initiation of the first phase 3 trial of a ProlX product. Another payment in Biomira common stock (with registration rights) of U.S. $10 million is due upon regulatory approval of a ProlX product in a major market. Finally, under certain circumstances, ProlX shareholders may also receive a share of revenue from a potential collaboration agreement for a ProlX product in a specified non-oncology indication.
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