GlaxoSmithKline to acquire Corixa

GlaxoSmithKline is to acquire Seattle-based Corixa, a developer of products that regulate immunity.

As a result of the acquisition, GSK will ac-quire all scientific and business programmes, activities, assets and all related rights of Corixa. Importantly, GSK will acquire Corixa's manufacturing facility in Hamilton, MT (USA) which produces Monophosphoryl Lipid A (MPL), a novel adjuvant contained in many of the vaccines in GSK's pipeline. Furthermore GSK will no longer incur roy-alties and other costs under the existing agreements in place between GSK and Corixa nor will GSK incur royalties on future sales of their vaccines containing MPL.

GSK will also acquire all assets related to a candidate prophylactic tuberculosis vaccine and to a portfolio of candidate immunothera-peutic cancer vaccines, being developed by GSK Biologicals and which contain antigens discovered by Corixa pursuant to a 1998 multi-field vaccine discovery collaboration between the companies. As a result of the acquisition, GSK will no longer be required to pay royalties related to these antigens. Corixa's portfolio also includes other compounds such as TLR4 agonists and antagonists.

Jean Stephenne, President of GSK Biologicals, said: 'This is an important strategic deal for GSK's vaccines division. MPL, in par-ticular, is an important component in many of our most promising vaccines under development, including Cervarix, our candidate vaccine targeting infection with the Human Papilloma Virus (HPV), a leading cause of cervical cancer.

'In addition, this also represents the next step in progressing GSK's promising tuberculosis vaccine approach and its cancer immuno-therapeutics, as Corixa and GSK have together developed considerable expertise in these areas over the years.'

The acquisition is structured as a cash for stock transaction, with the shareholders of Corixa entitled to receive $4.40 per common share, representing a total value of approximately $300m. The transaction, which has been unanimously approved by Corixa's Board of Directors,is subject to approval of its shareholders, regulatory clearance and certain other conditions. GSK owns approximately 8% of the outstanding Corixa shares and additional holders of approximately 11% of the shares have agreed to vote their shares in favour of the transaction. The transaction is expected to close in the third quarter of this year.

GSK's relationship with Corixa Corporation also included a collaboration with GSK's pharmaceuticals division on Bexxar, a therapeutic regimen for cancer indications. In December 2004 GSK acquired full marketing and development rights for Bexxar worldwide from Corixa.