Biomira Inc has exercised its option to acquire Chiron Corp's remaining rights to Theratope vaccine under the 1997 collaboration agreement between the two companies.
In 1999, Biomira entered into an option agreement with Chiron to acquire Chiron's portion of the rights to the product. Today's action is the final step in that process.
Under terms of the option agreement, Biomira will provide compensation to Chiron of (US) $2.25 million to help offset its investment in the development of the vaccine. Upon US regulatory approval and commercialization of Theratope vaccine, Biomira will make one final payment to Chiron in the amount of (US) $3.25 million. No further royalty or other payment will be made.
``We are pleased to finalize our agreement for complete commercial rights to Theratope,'' said Alex McPherson, President and CEO of Biomira. ``The Company is in a strong cash position and is now unencumbered to negotiate favorable partnership agreements for Theratope and BLP25 vaccines.''
Biomira is a biotechnology company specializing in the development of innovative therapeutic approaches to cancer management.