Pharmexa and Affitech to combine operations to create antibody therapeutics firm

Danish company Pharmexa and privately owned Norwegian antibody research firm Affitech are to merge to create a new antibody therapeutics company.

On completion, Affitech shareholders will own 70% of the new company, which will be renamed Affitech, and Pharmexa shareholders the remaining 30%.

The existing Affitech drug discovery business in Oslo will be renamed Affitech Research.

Dr Achim Kaufhold, currently ceo of Copenhagen-based Pharmexa, will become ceo of the combined group. Affitech's ceo, Dr Martin Welschof, will become md of Affitech Research and chief technology officer of the group.

The combined company is expected to employ around 40 people. It will maintain its listing on the Nasdaq OMX exchange in Copenhagen.

The aim of the merger is to transform Pharmexa from a cancer and infectious disease vaccine business into a company focused on the research and development of human antibody therapeutic drugs.

Announcing the merger, Kaufhold said: "Pharmexa has experienced product setbacks over the last year, which have led us to consider a variety of strategic options to revitalise the business and to generate future value for our shareholders.

"The acquisition of Affitech builds on the expertise and capabilities of Pharmexa, but is also a transformational event that moves us into the exciting field of antibody therapeutics, one of the most attractive sectors of the biopharmaceutical industry."

Pharmexa's rebirth in the field of human therapeutic antibodies builds on the company's long-standing expertise in medical immunology.

Welschof added: "As a direct result of the merger, Affitech will have the capability for the first time to develop its own antibody products through human clinical trials."