Sept. 26 /PRNewswire/ -- Abgenix, Inc. (Nasdaq: ABGX - news) and ImmGenics, Inc. announced today a definitive agreement whereby Abgenix will acquire ImmGenics in an all-stock transaction. The transaction, which is expected to be completed by December 1, 2000, has been approved by both companies' boards of directors and remains subject to ImmGenics shareholder approval. Abgenix will exchange approximately U.S.$77 million (CAN$110 million) of its stock for all ImmGenics shares and options.
ImmGenics, founded in 1993, has developed a proprietary technology which can increase both the effectiveness and speed of antibody product discovery efforts. ImmGenics' technology dramatically increases the number of antibodies that can be screened for any given antigen target. This breakthrough technology is expected to allow Abgenix to rapidly select optimal product candidates from larger pools of antibodies.
``Abgenix is very excited to be adding this powerful technology to our growing collection of antibody product discovery tools,'' said R. Scott Greer, chairman and CEO of Abgenix. ``We intend to maintain our technological leadership in the antibody field with both internal research initiatives and acquisitions. We also look forward to integrating ImmGenics' high caliber employee group with the Abgenix team.''
``Abgenix, with its industry leading XenoMouse(TM) human antibody technology and its commitment to enhancing antibody product discovery efforts, is the ideal partner for ImmGenics,'' stated Kevin Leslie, Ph.D., ImmGenics' president and CEO. ``We enthusiastically anticipate combining our technology with Abgenix's antibody product discovery program.''
ImmGenics' technology involves screening antibodies directly from antibody-producing B cells rather than from hybridoma cell lines. This provides a much larger pool of candidates than are available with traditional hybridoma technology. ImmGenics' technology provides access to the complete immune response for the identification of antibodies with the desired functional properties and highest affinities. Abgenix estimates that this difference is between 100 and 1000 fold. In addition to providing greater antibody diversity, eliminating the hybridoma generation step will allow Abgenix to shorten product development timelines.
``With exclusive access to ImmGenics' technology, Abgenix will be able to offer unprecedented antibody diversity to specific antigen targets,'' stated C. Geoffrey Davis, Ph.D., Abgenix's chief scientific officer. ``By scanning the entire immune repertoire of an immunized XenoMouse, this technology will allow us to rapidly select the very best fully human antibodies, as defined by specificity, functional properties and affinity.''
At the closing of the transaction, Abgenix will exchange approximately US$77 million (CAN$110 million) of Abgenix common stock, based on a 5-day average price, for all outstanding ImmGenics shares and options. For accounting purposes, the transaction will be treated as a purchase and the company will incur a significant, yet-to-be-determined, one-time charge in the fourth quarter, as well as ongoing amortization of goodwill. Operating expenses for Abgenix are anticipated to increase modestly, by approximately US$2-3 million annually as a result of this acquisition. Abgenix has a strong balance sheet including $560 million in cash, cash equivalents and marketable securities at June 30, 2000.... |
