VGX Pharmaceuticals Inc., a privately held biopharmaceutical company, and ADViSYS, Inc., a privately held biotechnology company, announced the signing of a definitive merger agreement. Concurrently, VGX Pharmaceuticals has created a new division called VGX Immune Therapeutics to maximize the Company's current assets in the DNA field as well as the considerable expertise held by its founders and senior management in research and development of DNA-based vaccines and therapeutics.
According to a press release, 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 Immune Therapeutics. VGX Immune Therapeutics will focus on developing and commercialising DNA-based vaccines and therapeutics for major indications in the areas of infectious diseases and cancer.
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. to expand the company's overseas R&D, manufacturing and marketing capabilities.
"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 emergence of VGX Immune Therapeutics marks another key milestone in our growth as a global biopharmaceuticals company. 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."
Ronald O. Bergan, chairman of the board of ADViSYS, said, "The therapeutic development programs underway at VGX represented a natural strategic fit for ADViSYS and the experience of VGX's management team was a key consideration as we evaluated the merger. We are pleased to combine our assets with VGX's clinical development programs to develop novel DNA delivered therapeutics."
Kevin W. Rassas, Sr. VP of Business Development of VGX, added, "ADViSYS' electrokinetic delivery (EKD) devices and proprietary technologies for DNA delivered therapeutics and vaccines complement well our management team's considerable prior expertise in the field. As a part of this transaction, we will also acquire ADViSYS' state of the art cGMP DNA plasmid manufacturing facility, which will be used to meet our internal clinical development needs and generate contract manufacturing revenues. VGX Immune Therapeutics Division will be uniquely positioned to provide a one-stop-shop solution to our academic collaborators and industry partners in rapidly advancing lead candidates through Phase I/II clinical studies."
The addition of ADViSYS' veterinary product pipeline also provides VGX Pharmaceuticals 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.
"Along with significant progress in conducting phase II trials for our lead pharmaceutical candidates Pictovir and VGX-410C as well as the advancements in planned IND filings for VGX-150 and VGX-1027 this year, the launch of VGX Immune Therapeutics marks another major event for VGX Pharmaceuticals." added Dr. Kim.
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.