Private company bought for $28M.
Biomira acquired ProlX Pharmaceuticals, a privately held biopharmaceutical company developing therapeutics for cancer.
The acquisition will give Biomira a portfolio of oncology products. The company’s pipeline will include one product expected to enter Phase III by the end of 2007, one product expected to enter Phase II in the fourth quarter of 2006, and two products expected to begin clinical trials between June and October, 2007.
Following closing, Biomira will pay $3 million in cash and approximately 17,878,000 shares of Biomira common stock in return for all of the outstanding stock of ProlX. In addition, there may be up to three future payments based on the achievement of specified milestones. A payment in
Biomira common stock of $5 million is due upon the initiation of the first Phase III trial of a ProlX product. Another payment worth $10 million of Biomira common stock is expected 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 nononcology indication.