RXi to acquire Apthera
RXi Pharmaceuticals Corp. (NASDAQ:RXII) will acquire cancer company Apthera Inc. (Scottsdale, Ariz.) in a stock deal. Apthera shareholders will receive 4.8 million RXi shares, valued at $7.2 million based on RXi's close of $1.50 on Wednesday, before the deal was announced. Apthera shareholders will own under 20% of the combined company, while RXi shareholders will own the remainder. Apthera shareholders will also be eligible for up to $32 million in milestones related to NeuVax, Apthera's lead candidate. The vaccine consisting of an immunogenic peptide derived from HER2 and sargramostim is slated to begin a Phase III trial in 1H12 to treat HER2-positive breast cancer.
RXi said Apthera's NeuVax will help RXi transition from a technology company to a late-stage product development company. The combined company will integrate the RXi and Apthera management teams and reduce RXi's early stage RNAi R&D to focus on NeuVax and RXi's RXI-109, a self-delivering rxRNA compound to treat dermal scarring. RXi plans to submit an IND for the indication this year and begin clinical testing in early 2012. ...