3rd May 2005 07:00
GlaxoSmithKline PLC30 April 2005 GLAXOSMITHKLINE TO ACQUIRE CORIXA CORPORATION - DEVELOPER OF NOVEL VACCINE ADJUVANTS AND ANTIGENS LONDON (UK) AND PHILADELPHIA PA (USA) (29 APRIL 2005) -- GlaxoSmithKline plc(NYSE: GSK) today announced the execution of a definitive agreement pursuant towhich GSK will acquire Corixa Corporation (Nasdaq: CRXA), a developer ofinnovative products that regulate immunity, based in Seattle, WA (USA). Theacquisition is structured as a cash for stock transaction, with the shareholdersof Corixa entitled to receive $4.40 per common share, representing a total valueof approximately $300 million. The transaction, which has been unanimouslyapproved by Corixa's Board of Directors, is subject to approval of itsshareholders, regulatory clearance and certain other conditions. GSK ownsapproximately 8% of the outstanding Corixa shares and additional holders ofapproximately 11% of the shares have agreed to vote their shares in favor of thetransaction. The transaction is expected to close in the third quarter of thisyear. As a result of the acquisition, GSK will acquire all scientific and businessprograms, activities, assets and all related rights of Corixa. Importantly, GSKwill acquire Corixa's manufacturing facility in Hamilton, MT (USA) whichproduces Monophosphoryl Lipid A(R) (MPL(R)), a novel adjuvant contained in manyof the vaccines in GSK's pipeline. Furthermore GSK will no longer incurroyalties and other costs under the existing agreements in place between GSK andCorixa nor will GSK incur royalties on future sales of their vaccines containingMPL(R). GSK will also acquire all assets related to a candidate prophylactictuberculosis vaccine and to a portfolio of candidate immunotherapeutic cancervaccines, being developed by GSK Biologicals and which contain antigensdiscovered by Corixa pursuant to a 1998 multi-field vaccine discoverycollaboration between the parties. As a result of the acquisition, GSK will nolonger be required to pay royalties related to these antigens. Corixa'sportfolio also includes other compounds such as TLR4 agonists and antagonists. Jean Stephenne, President of GSK Biologicals, said: "This is an importantstrategic deal for GSK's vaccines division. MPL(R), in particular, is animportant component in many of our most promising vaccines under development,including Cervarix(R), our candidate vaccine targeting infection with the HumanPapilloma Virus (HPV), a leading cause of cervical cancer. "In addition, this also represents the next step in progressing GSK's promisingtuberculosis vaccine approach and its cancer immunotherapeutics, as Corixa andGSK have together developed considerable expertise in these areas over theyears." GlaxoSmithKline - one of the world's leading research-based pharmaceutical andhealthcare companies - is committed to improving the quality of human life byenabling people to do more, feel better and live longer. For companyinformation, visit GlaxoSmithKline on the World Wide Web at www.gsk.com. S M BicknellCompany Secretary29th April 2005 EDITORS NOTES:ABOUT MPL(R) MPL(R), a vaccine adjuvant from Corixa, is a key component in many of the noveland GSK Bio proprietary adjuvant systems used in the future vaccine pipeline ofGSK Biologicals. MPL(R) is a component in GSK Bio's new hepatitis B vaccine,Fendrix(R), which in February this year received regulatory approval fromEurope's CHMP. MPL(R) is also included in the adjuvant system used in GSK Bio'scandidate malaria vaccine. Other GSK Bio vaccines under development with MPL(R)include a candidate prophylactic vaccine against cervical cancer caused by HPV,a candidate prophylactic vaccine against herpes simplex and a number ofprophylactic vaccines specifically designed for infections in seniors such asvaricella zoster and the flu virus. In addition MPL(R) is a key component inthe adjuvant system GSK Bio is testing in a number of its investigational cancerimmunotherapeutic vaccine approaches for the treatment of breast, lung, melanomaor prostate cancers. GSK now has clinical experience with MPL(R)-containing vaccines in over 80,000doses and 30,000 subjects. In various clinical studies, GSK vaccines containingadjuvant formulations which include MPL(R) as a component were shown to improveantibody responses (kinetics and titers) and, importantly, to improvecell-mediated immune responses important for persistence of an effective immuneresponse. GSK BIOLOGICALS GSK Biologicals, one of the world's leading vaccine manufacturers, is located inRixensart, Belgium. Belgium is the centre of all GSK's activities in the fieldof vaccine research, development and production. GSK Biologicals employs morethan 1000 research scientists who are devoted to discovering new vaccines anddeveloping more cost-effective and convenient combination products to preventinfections that cause serious medical problems worldwide. GSK Biologicalsemploys 3600 employees in Belgium (more than 4450 worldwide). GSK/CORIXA PREVIOUS RELATIONSHIP GSK's relationship with Corixa Corporation also included a collaboration withGSK's pharmaceuticals division on Bexxar, a therapeutic regimen for cancerindications. In December 2004 GSK acquired full marketing and developmentrights for Bexxar worldwide from Corixa. Enquiries: Vaccine enquiries: Anne Walsh +(32) 2 656 9831 +(32) 475835 782UK Media enquiries: Philip Thomson (020) 8047 5502 David Mawdsley (020) 8047 5502 Chris Hunter-Ward (020) 8047 5502 US Media enquiries: Nancy Pekarek +(215) 751 7709 Mary Anne Rhyne +(919) 483 2319 Patricia Seif +(215) 751 7709 European Analyst/Investor enquiries: Duncan Learmouth (020) 8047 5540 Anita Kidgell (020) 8047 5542 Jen Hill (020) 8047 5543 US Analyst/ Investor enquiries: Frank Murdolo +(215) 751 7002 Tom Curry +(215) 751 5419 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Glaxosmithkline