AVI acquires eXegenics
Biopharmaceutical company AVI BioPharma, from Portland, Oregon, and drug discovery and delivery company eXegenics, of Dallas, Texas, have signed a definitive merger agreement under which AVI has agreed to acquire eXegenics in a stock-for-stock transaction. The exchange offer is expected to close in August of this year, and the merger is expected to close in September of this year.
Biopharmaceutical company AVI BioPharma, from Portland, Oregon, and drug discovery and delivery company eXegenics, of Dallas, Texas, have signed a definitive merger agreement under which AVI has agreed to acquire eXegenics in a stock-for-stock transaction. The exchange offer is expected to close in August of this year, and the merger is expected to close in September of this year.
'Acquiring eXegenics should provide AVI up to approximately $10m in additional cash as well as antisense drug discovery technology and three validated cancer targets,' said Dr Denis R Burger, chief executive officer at AVI. 'In addition, eXegenics' work in rapid development of drugs using their Quantum Core Technology is an excellent fit with AVI's existing viral rapid response platform. We believe the cash AVI will receive in the transaction will enable AVI to further its clinical development programs and create additional value for all shareholders.'
"This transaction affords our stockholders greater liquidity for their investment in the near term as well as the opportunity to participate in the future growth of AVI,' said Dr. Ronald Goode, chairman, president and ceo of eXegenics. 'We believe AVI has demonstrated its ability to produce clinical candidates with significant potential market value. The breadth of AVI's clinical development programs is impressive, as is AVI's demonstrated ability to rapidly advance clinical candidates.'
Key highlights of the acquisition include:
• The acquisition will bring additional cash of up to approximately $10 million to AVI;
• AVI will acquire all eXegenics intellectual property, including eXegenics' target validation antisense platform (the Oasis program) and eXegenics' Quantum Core Technology;
• AVI will not retain eXegenics employees;
• AVI does not anticipate that the consummation of the transaction will result in an increase in AVI expenditures or burn rate; and
• There will be no change to the AVI board of directors or senior management as a result of the transaction