Medicago has been collaborating with MTPC since 2012 to develop and commercialise rotavirus VLP-based vaccines
Mitsubishi Tanabe Pharma Corporation (MTPC) will acquire all of the shares of Medicago, other than those currently held by Philip Morris Investments (PMI), for US$1.16 in cash per share, in a deal valued at $357m.
Upon completion of the transaction, Medicago, a Canadian biopharmaceutical developer of vaccines based on proprietary manufacturing technologies and Virus-Like Particles (VLPs), will be jointly owned by MTPC (60%) and PMI (40%).
Medicago’s board of directors has approved the deal.
PMI, which currently holds currently holds 98,608,800 shares, representing 38.5% of Medicago, has agreed to support the transaction until 12 April 2014. In addition, all directors and certain officers of Medicago holding approximately 1.6% of the shares have agreed to the deal.
These resources provide us with the ability to foster the development of innovative vaccines with the financial stability to expand
‘Mitsubishi Tanabe Pharma has been a solid and committed partner with the ability to drive Medicago’s future growth and success in the development of our best-in-class rapid plant-based vaccines,’ said Andy Sheldon, President and CEO of Medicago.
‘Mitsubishi Tanabe Pharma's capabilities in biopharmaceutical research, development and commercialisation along with its financial stability offer us the ideal opportunity to realise the full potential of our platform.’
Sheldon added: ‘These resources provide us with the ability to foster the development of innovative vaccines with the financial stability to expand our Quebec, Canadian, US and global operations.’
The transaction is subject to customary closing conditions, including receipt of all regulatory approvals, and is expected to close later this calendar year.
Medicago formed a C$33m strategic alliance with Japanese drug company MTPC in 2012 to develop three new rotavirus vaccines using plant technology.