V.I. Technologies, Panacos merging
The companies will merge, with VITX owning about 66% of the combined company and Panacos (Gaithersburg, Md.) owning about 34%. VITX will issue 25 million shares, which values Panacos at $27 million based on VITX's Wednesday close of $1.08. Panacos shareholders are eligible for an additional 20 million shares upon completion of clinical milestones.
Panacos' lead program is PA-457, an HIV compound in Phase I. PA-457 is an oral binder of an immature form of the capsid protein that blocks the production of infectious particles. VITX's Inactine, a small molecule electrophilic nucleic acid binder that inactivates pathogens in red blood cell concentrates, is in Phase III studies in patients requiring acute blood transfusion support. VITX's Phase III trial for chronic transfusion support was halted last year following concerns about antibody responses to Inactine-treated red blood cells. ...