VaxGen acquires diagnostic company diaDexus in stock deal
This article was originally published in Scrip
US biotech firm VaxGen has acquired diaDexus, a privately held diagnostics company, in a stock-for-stock merger.
The combined operation will be called diaDexus and will focus on its diagnostic test for coronary heart disease and ischaemic stroke.
The deal would allow diaDexus to use VaxGen's capital to grow product revenue and eventually achieve profitability, said VaxGen's president and principal accounting officer James Panek. VaxGen had cash and short term investments of $32.3 million as of 12 March.
VaxGen said that the future value of its anthrax vaccine, which was sold to Emergent BioSolutions, and its HIV/AIDS vaccine candidates, which were licensed to Global Solutions for Infectious Disease, would be retained within the new company.
VaxGen will issue around 51.6 million new shares in exchange for all of diaDexus's outstanding equity with VaxGen's shareholders owning approximately 39.1% of the combined company.
The shareholders of both companies have yet to approve the acquisition but it is expected to close on 15 May and to be completed during the third quarter.
VaxGen has a chequered history with M&A and last year was itself an acquisition target for OXiGENE, which wanted to buy the company to boost its cash position (scripnews.com, 16 October 2009). The proposed deal fell through after the majority of VaxGen's shareholders did not vote in favour of the transaction at a special meeting of shareholders.
VaxGen considered liquidated in 2008 when its proposed merger with Raven Biotechnologies was abandoned in the face of strong opposition from Vaxgen's shareholders (scripnews.com, 31 March 2008).