Paladin Labs Inc, a leading Canadian specialty pharmaceutical company, has acquired all the outstanding shares ViRexx Medical Corp.
ViRexx is a Canadian-based development-stage biotech company focused on developing innovative-targeted therapeutic products. ViRexx has three proprietary technology platforms - Chimigen Vaccine Platform, T-ACTTM Platform and the AITTM Platform.
The Chimigen Platform is a versatile platform technology being used primarily to generate therapeutic vaccines for the treatment of Hepatitis B and Hepatitis C. Chimigen vaccines are designed to stimulate broad immune responses towards specifically targeted viral and foreign antigens. An early Chimigen Hepatitis B vaccine candidate completed a successful phase-I trial. Our goal will be to continue to develop the next generation Chimigen Hepatitis B vaccine towards completion of a phase-I trial in 2010.
The T-ACTTM Platform technology is deigned to interrupt blood supply to tumours, leading to tumour starvation and death. The lead product candidate of this platform is Occlusin 50 Injection, a treatment for primary cancer of the liver. This product has completed a phase-I trial in treating hepatocellular carcinoma as part of a transcatheter arterial chemoembolization. The second product candidate of the T-ACTTM Platform is Occulsin 500 AED, an embolic agent designed to treat hypervascular tumours including uterine fibroids. Our goal will be to seek partners for the future development of the T-ACTTM Platform.
The lead product candidates for the AITTM Platform include OvaRex MAb for ovarian cancer and BrevaRex MAb for breast cancer. OvaRex MAb was subject to one phase-II study examining combination chemo-immunotheray in front-line treatment, and two randomized, double blind and placebo controlled phase-III clinical trials examining immunotherapy during remission. BrevaRex MAb was shown to be safe in a phase-I clinical trial in patients with MUC-1 expressing tumours. Our goal will be to seek partners for the future development of the AITTM Platform.
Paladin paid $1,250,000 payable to existing ViRexx creditors. In addition, former ViRexx shareholders could receive a payment of up to $2,500,000, if certain conditions are met before December 31, 2009
"ViRexx spent over $30 million in developing its promising, innovative technology. Unfortunately, ViRexx got caught in this financial storm without the protection of cash. We intend to continue ViRexx's stated strategy of focusing resources on the Chimigen Platform while seeking outside partnerships for the T-ACTTM and AITTM Platforms. We believe that our focused investment in Chimigen over the next 18 months may reward our shareholders through a lucrative partnering agreement," said Jonathan Ross Goodman, president and CEO.
As a result of this transaction, Paladin will be spending approximately $2 - $2.5 million in R&D in 2009 on the Chimigen platform and partnering activities. In addition, Paladin's non-capital losses and investment tax credits available to offset future taxable income has increased by a minimum of $28 million.
Paladin Labs is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian market.