Biota, MaxThera Inc., Prolysis deal

Biota acquired fellow infectious disease companies MaxThera and Prolysis. 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. Biota said it will retain Prolysis' staff and maintain activities at its facilities in Oxford, U.K., as well as offer Prolysis Founder Jeff Errington a spot on the board. MaxThera shareholders are eligible for 12% of all upfront and milestone payments received by Biota if Biota out-licenses MaxThera's two main programs. MaxThera President and CSO Ania Knap and Head of Medicinal Chemistry Roger Frechette, both founders of MaxThera, will continue the programs at the MaxThera facility in Boston.

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. ...