Peptech plans to merge with EvoGenix in a transaction that values EvoGenix at approximately AUD 156 million, or roughly $128.55 million. Peptech states that this represents a 33% premium over EvoGenix' last traded price of AUD .845 and a 39% premium over its 30-day volume average weighted price.
The new firm, which will be renamed, will focus on developing antibody- and protein-based franchises for the treatment of inflammatory and bone diseases as well as cancer. “Consistent with our previously announced strategy, this transaction creates a combined entity, which is poised to be a major player on the worldwide antibody stage,” comments John Chiplin, CEO of Peptech. “We have genuinely built critical mass in this Australian merger to compete aggressively in the fastest growing sector of the international human therapeutic market.
“EvoGenix and Peptech are an excellent strategic fit at all levels,” he adds. “EvoGenix has revenue-generating technology with proven capabilities and linkages that blend ideally with our own product development activities to deliver more rapid company growth and delivery of products to the clinic.”
Peptech reports that it has substantial cash to fast track product development, having earlier this year received more than $130 million from the sale of its share in Domantis to GlaxoSmithKline. In addition the combined company receives on-going revenue streams from Abbott and Johnson & Johnson in relation to antibody, anti-TNF drugs Humira® and Remicade®. Peptech's own anti-TNF drug will enter the clinic this month.