BLUE BELL, Pa. & THE WOODLANDS, Texas--(BUSINESS WIRE)--VGX Pharmaceuticals Inc., a privately held biopharmaceutical company, and ADViSYS, Inc., a privately held biotechnology company, announced today the signing of a definitive merger agreement. All acquired assets of ADViSYS, including its significant pipeline for DNA delivered therapeutics as well as DNA delivery and cGMP manufacturing capabilities will be added to VGX Pharmaceuticals’ newly created Immune Therapeutics division. VGX Immune Therapeutics will focus on developing and commercializing DNA-based vaccines and therapeutics for major indications in the areas of infectious diseases and cancer.
“We are very excited to bring into our fold ADViSYS’ technologies and recognized leaders in the field of DNA manufacturing and delivery,” said Dr. J. Joseph Kim, President and CEO of VGX Pharmaceuticals. “The acquisition of ADViSYS’ strategic assets and expertise allows us unprecedented vertical control over the development of DNA-based therapies. As a result of this merger, VGX Pharmaceuticals will more than double the number of employees as well as synergistically enhance the combined product pipeline. The critical mass gained from this acquisition brings us one step closer to achieving our overall goal of becoming a publicly traded global biopharmaceutical company. We remain committed to creating value for our shareholders by being opportunistic in our strategy for growth via M&A activities.”
VGX Pharmaceuticals will add ADViSYS’ electrokinetic gene delivery (EKD) devices and other proprietary technologies for DNA-based therapeutics. The addition of ADViSYS’ veterinary product pipeline also provides VGX with late-stage/near-market products to balance the product development pipeline and to mitigate early-stage development risk faced by all drug development companies. The porcine-growth hormone releasing hormone (GHRH) application is presently undergoing pre-market regulatory review in Australia. Additionally, the animal health products have the potential to provide significant near-term revenues for VGX and the Company will be actively seeking commercialization partners to better access the global markets.
This transaction marks the second major step in VGX Pharmaceuticals’ global strategy for growth. In November 2005, VGX Pharmaceuticals acquired a controlling interest of a publicly traded pharmaceutical company subsequently renamed as VGX International Inc. (KOSPI: 011000) to expand the Company’s overseas R&D, manufacturing and marketing capabilities.
Details of the Transaction
The merger agreement has been approved by the Boards of Directors of VGX and ADViSYS. Under the terms of the agreement, VGX will purchase all significant assets covering ADViSYS’ intellectual property including plasmid expression vectors, growth hormone releasing hormone and electrokinetic delivery technology. Additionally, VGX will acquire ADViSYS’ R&D and cGMP manufacturing operations at its Woodlands, Texas site.
Following the closing of the purchase agreement, ADViSYS assets will be merged into the newly created VGX Immune Therapeutics, a division of VGX Phamaceuticals, Inc. Kevin W. Rassas, Sr. VP of Business Development will oversee the integration of the two companies and will have operating responsibility over the new division. C. Jo White, Chief Medical officer of VGX will become Chief Medical Officer of the combined company. Gene Kim, Chief Financial Officer of VGX will become Chief Financial Officer of the combined company.
About VGX Pharmaceuticals
VGX Pharmaceuticals is a biopharmaceutical company with small molecules and biologics product candidates for the treatment of infectious diseases, cancer and inflammatory diseases. The Company’s clinical development programs include PICTOVIR™ for HIV infection and VGX-410C for chronic HCV infection, both of which are currently in Phase II clinical trials. In addition, Phase I clinical trials will be initiated in 2007 for VGX-150 for the treatment of Melanoma and VGX-1027 for inflammatory diseases. The product candidates and technology programs are protected by the Company’s extensive global intellectual property portfolio. More information about VGX can be found at www.vgxp.com. Contacts
VGX Pharmaceuticals Inc. Kevin W. Rassas, 267-440-4208 Fax: 267-440-4242 E-mail: Rassas@vgxp.com www.vgxp.com
