Going whole hog

In forming a take-out strategy, companies must decide when to acquire an entire company as opposed to simply snatching up individual assets. Corixa Corp. opted for the former in its $56.3 million acquisition of Ribi ImmunoChem Research Inc. for two primary reasons: the flexibility offered by RIBI's pipeline and the chance for CRXA to add a manufacturing facility.

The late stage of RIBI's adjuvants combined with their versatility provided the rationale for acquiring RIBI instead of purchasing particular products, said CRXA Chairman and CEO Steven Gillis. "We wanted the maximum flexibility from Ribi's portfolio as opposed to bidding for their products on a case-by-case basis," he said...