Paladin Labs has completed its acquisition of ViRexx Medical Corp for $1.25 million. Former ViRexx shareholders could receive up to $2.5 million if certain conditions are met within the next week, although Paladin has not disclosed what those conditions are. Paladin has already spent $200,000 to keep the company afloat while it was in bankruptcy. "ViRexx spent over $30 million in developing its promising, innovative technology. Unfortunately, ViRexx got caught in this financial storm without the protection of cash," said Jonathan Ross Goodman, Paladin's president and chief executive.
Paladin plans to develop the company's Chimigen Vaccine platform, which includes vaccines for hepatitis B and C. The company says it will spend $2 million to 2.5 million on R&D for the Chimigen program and partnering next year. Paladin expects to complete a Phase I study for a hep B vaccine by 2010. "We believe that our focused investment in Chimigen over the next 18 months may reward our shareholders through a lucrative partnering agreement," Goodman said.
The company will try to partner the other two programs--T-ACT and AIT, Paladin tells Genetic Engineering and Biotechnology News.