CLOSING HELD FOR ACQUISITION OF NEUROVIR THERAPEUTICS, INC.
The German biopharmaceutical company MediGene AG (NMarkt: MDG) announced today the closing of the acquisition of NeuroVir Therapeutics, Inc. (San Diego, CA), a biopharmaceutical company developing modified herpes simplex viruses (HSV) for use in cancer therapy. Currently NeuroVir has two product candidates in clinical trials. The NeuroVir shareholders have consented to the consummation of a merger of MediGene AG’s newly founded subsidiary, MediGene, Inc. with NeuroVir. MediGene AG will take ownership of NeuroVir under the name MediGene, Inc. upon registration of the capital increase by MediGene AG for issuance of shares to compensate NeuroVir shareholders. MediGene’s Chief Executive Officer, Peter Heinrich, Ph.D., will act as CEO of the combined entity, Frank Tufaro, Ph.D. will head MediGene, Inc. as a Managing Director.
MediGene AG is acquiring NeuroVir in a stock-for-stock transaction. 996.631 new MediGene AG shares will be issued to NeuroVir’s shareholders, with an exclusion of pre-emptive rights of existing shareholders, in exchange for all shares of NeuroVir that MediGene had not already owned. MediGene AG purchased approximately 9% of NeuroVir previously to its IPO in June 2000. Upon completion of the transaction, NeuroVir’s former shareholders will hold approximately 8.6% of MediGene AG ‘s outstanding shares on a fully diluted basis.
“We are proud to have completed this important strategic step, and will ardently pursue the integration of the new MediGene, Inc. into the combined entity," states MediGene’s CEO, Peter Heinrich, Ph.D. “The merger adds two product candidates in clinical development and one platform technology to our product and technology portfolio and enhances potential peak sales by US$ 500 million. With the broadened range of product candidates and technologies MediGene now further reduces the risk profile of the company. In addition the transaction establishes a foothold for MediGene in the US, we now benefit of former NeuroVir’s experience with the FDA, their extensive clinical network, and their Scientific Advisory Board including outstanding international scientists and opinion leaders.“
With this acquisition, MediGene has five product candidates in clinical development: Polyphenon™E against genital warts (phase 3), Etomoxir against Congestive Heart Failure (phase 2), G207 to treat malignant brain tumors (phase 2 in preparation), NV1020 to treat colorectal cancer that has metastasized to the liver (phase 1/2) and CVLP vaccine to treat cervical cancer and its precursors (phase 1/2). Its technology platform comprises four proprietary technologies applied in cardiology and oncology.
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