PharmAthene terminates merger agreement with Theraclone
The announcement comes shortly after the Biomedical Advanced Research and Development Authority informed Theraclone that a proposal to fund TCN-032, an anti-influenza antibody, would not be funded under the current proposal. Theraclone submitted the proposal on August 29 to advance clinical development of the antibody to counteract serious influenza, including pandemic flu.
"While we are disappointed that we did not receive BARDA funding at this time, we remain encouraged by the potential of TCN-032 for two current indications - to help combat pandemic flu as well as the commercial potential to treat patients who are hospitalized with serious influenza infections given the novel mechanism, mutation resistance and extended therapeutic window of our antibody to flu," Clifford Stocks, the CEO of Theraclone Sciences, said.
The agreement between PharmAthene and Theraclone provided for the merger of a wholly-owned subsidiary of PharmAthene into Theraclone in an all-stock, merger-of-equals transaction. PharmAthene will pay Theraclone a $1 million termination fee.
"I would like to thank the employees and management of PharmAthene and Theraclone who have worked diligently on this transaction over the past several months," Eric Richman, the president and CEO of PharmAthene, said. "We at PharmAthene will continue to seek to identify opportunities to maximize value for our stockholders."
PharmAthene also cancelled its special meeting of stockholders that was scheduled for Wednesday.