PharmAthene, Inc. announced this week that it has terminated its definitive merger agreement with Theraclone Sciences, Inc. with consent from Theraclone. The agreement provided for the merger of a wholly-owned subsidiary of PharmAthene into Theraclone in an all-stock, merger-of-equals transaction.
The announcement comes one week after Theraclone disclosed it will not receive anticipated funding from the Biomedical Advanced Research and Development Authority (BARDA) to advance development of its recombinant fully human monoclonal antibody TCN-032 into Phase II clinical trials.
PharmAthene has cancelled the Special Meeting of Stockholders scheduled for December 3, 2013 and will pay Theraclone a $1 million termination fee.
Theraclone utilizes a proprietary antibody discovery technology, I-STARTM (In-Situ Therapeutic Antibody Rescue), to identify rare human antibodies that may be developed into antibody product candidates that are potentially safer and more effective than current therapies.
“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, novel mechanism, mutation resistance and extended therapeutic window of our antibody to flu,” commented Clifford Stocks, CEO of Theraclone Sciences. “We have requested a meeting with BARDA to seek further input regarding our submission and how best to prepare a future funding request.”
PharmAthene’s current biodefense portfolio includes: SparVax® – a next generation recombinant protective (rPA) anthrax vaccine; rBChE bioscavenger – a medical countermeasure for nerve agent poisoning by organophosphorous compounds, including nerve gases and pesticides; and Valortim® – a fully human monoclonal antibody for the prevention and treatment of anthrax infection.
Sources: Theraclone, PharmAthene