Access Pharmaceuticals, Inc. to Acquire Virologix
DALLAS, March 1 /PRNewswire/ -- Access Pharmaceuticals, Inc. (OTC Bulletin Board: AXCS) ("Access") today announced that it has entered into an agreement to acquire Virologix Inc. ("Virologix"), a private company focused on the development of product candidates for the prevention and treatment of viral diseases including HIV. Under terms of the acquisition agreement the Virologix shareholders will receive an undisclosed amount of Access Common Stock.
Analogous to reverse transcriptase and protease inhibitors that have shown effectiveness against HIV, Virologix's compounds target a critical enzyme involved in viral infection and replication. A Phase I/II study has been designed to study this product candidate in HIV patients. Positive clinical data would provide important validation for this new class of HIV therapeutics. Virologix also has development programs in HTLV type I and II infection, and other applications of the proprietary technology being used in the HIV therapeutic program.
Commenting on the acquisition, Kerry P. Gray, President and CEO of Access, stated "The Virologix HIV program, which is now at the clinical development phase, offers Access potentially exciting technology in a market where novel scientific approaches are needed to continue the progress being made controlling this disease."
Gray continued, "The Virologix drug development portfolio is attractive, in that, as well as the potentially exciting HIV therapeutic program, there are other programs that could yield near-term products that may quickly generate royalty income, and licensing revenues. This acquisition is consistent with the Access strategy of developing a balanced technology platform that should generate near-term revenues and earnings, and offers the potential for a major product that would compete in a large therapeutic area."
The combination of the two companies will assist in building the critical mass to enable Access to accelerate development of its current drug development programs. It is anticipated that within the next 12 months, Access in conjunction with its partners will have seven clinical programs, three of which will be in phase III clinical trials -- amlexanox for the prevention and treatment of mucositis, amlexanox biodegradable disc for the prevention of canker sores and ResiDerm A(TM) for the treatment of acne.
It is anticipated that the closing of the acquisition will take place within the next 60 days. The transaction has been approved by the Boards of Directors of both companies and the closing is subject to the approval of the Virologix's shareholders, the completion of a private placement by Access and other customary closing conditions. |
