Biota acquires MaxThera, Prolysis

Biota Holdings Ltd. (ASX:BTA) acquired fellow infectious disease companies MaxThera Inc. (Boston, Mass.) and Prolysis Ltd. (Yarnton, U.K.). Prolysis shareholders will receive A$10.8 million ($10 million) in Biota stock, or a 2.2% stake in Biota, while MaxThera shareholders will receive $1.2 million in cash and $300,000 in Biota stock. Prolysis shareholders are eligible for up to 15% of all milestones and royalties received by Biota should Prolysis' programs be out-licensed. MaxThera shareholders are eligible for 12% of all upfront and milestone payments received by Biota, if Biota out-licenses MaxThera's two main programs.

Biota said the deals will expand its current portfolio, which is focused on antivirals, to include preclinical antibacterial programs. Prolysis has bacterial gyrase and topoisomerase inhibitors against Gram-positive bacteria, and cell division inhibitors to treat staphylococci infections. MaxThera's lead program targets inhibitors of a bacterial enzyme in the co-enzyme A pathway. Biota was up A$0.06 to A$2.89 on Thursday. ...