Epimmune and IDM to merge

Epimmune, a developer of vaccines for cancer and infectious diseases, and IDM (Immuno-Designed Molecules), a biopharmaceutical company specialising in immunotherapy for the treatment of cancer, have signed a definitive agreement which will see the companies combine in an all-stock transaction.

By combining, Epimmune and IDM expect to create a leading company in the increasingly important field of immunotherapeutics, with a broader and more mature product pipeline; nearer-term product revenue opportunities; an improved cash position, and increased visibility in the financial markets. It will be focusing on seven product candidates in clinical development for cancer and infectious disease indications.

IDM's lead product candidate, Mepact, has completed a Phase III clinical trial in the US for the treatment of osteosarcoma; received orphan drug status in the US and EU, and is expected to receive regulatory approval in 2007. The new company's other advanced clinical product candidates will address large cancer markets, including bladder, colorectal and non-small cell lung cancer and melanoma. It will also maintain strategic partnerships with Sanofi-Aventis, Medarex and Innogenetics.

Following the closing of the transaction, the combined company will be headquartered in San Diego and have manufacturing sites in Irvine, California and Paris, France, with approximately 150 employees on a combined basis. Dr. Jean-Loup Romet-Lemonne, chairman and ceo, IDM, will become ceo; Dr. Emile Loria, president and ceo, Epimmune, will become president and chief business officer; and Bob De Vaere, chief financial officer, Epimmune, will take on the same role, at the combined company.

The transaction has been unanimously approved by the boards of directors of both companies, and is expected to close in the second or third quarter of 2005, subject to the satisfaction of closing conditions, including approval of the transaction and a one-for-four reverse stock split by the Epimmune shareholders.