Australian Biotech Virax's Shares Have Jumped 40% On A US Cancer Drug Acquisition

William Thomas Cain/Getty Images

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.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at

Tagged In