Australian biotech Virax is to acquire US oncology company AKTivate Therapeutics and its novel cancer drug.
Virax shares closed up 40% to $0.007.
AKTivate’s technology includes two active clinical trials, one for breast cancer and one for ovarian cancer, fully funded by US government authorities.
Acquisition terms are weighted towards clinical success.
Under the terms of the agreement Virax will pay a US $300,000 cash consideration as well as 234 million shares at $0.01 per share.
Virax Managing Director Dr Robert Crombie says the drug is a highly promising asset presenting an outstanding clinical and commercial opportunity.
“This acquisition has the potential to catapult up-side for Virax shareholders,” he says.
The deal is subject to shareholder approval.