PharmAthene, Inc. [PIP] has completed its acquisition of the biodefense vaccines business unit from the United Kingdom’s Avecia Biologics in a deal that bolsters its portfolio of anthrax vaccine capabilities and gives it a potential product for plague vaccine. Terms of the deal include a $10 million cash payment and additional $7 million to be paid within 18 months of the closing. Avecia will also be able to receive payments up to $23 million contingent upon the achievement of certain milestones related to development and procurement contracts with the U.S. government. PharmAthene and Medarex are currently co-developing Valortim, a fully human monoclonal antibody for the prevention and treatment of anthrax infection. The company is also developing Protexia, a novel bioscavenger to prevent and treat organophosphate nerve agent poisoning. With the Avecia acquisition, PharmAthene is getting a second-generation recombinant Protective Antigen (rPA) anthrax vaccine and a third-generation rPA anthrax vaccine that doesn’t require refrigerated storage. The company also gets a recombinant dual antigen plague vaccine that the Defense Department has said it will not fund beyond current contractual commitments. However, PharmAthene believes that the Department of Health and Human Services may be interested in the plague vaccine.
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