Paladin Labs acquires ViRexx Medical

ViRexx has three proprietary technology platforms Chimigen vaccine platform, T-ACT platform and the AIT platform. The Chimigen platform is a versatile platform technology being used primarily to generate therapeutic vaccines for the treatment of Hepatitis B and Hepatitis C. Paladin Labs has said that it will continue to develop the next generation Chimigen hepatitis B vaccine towards completion of a Phase I trial in 2010.

Paladin paid $1.25m to existing ViRexx creditors. In addition, former ViRexx shareholders could receive a payment of up to $2.5m, if certain conditions are met before December 31, 2009. As a result of this transaction, Paladin will be spending approximately $2 to $2.5m in R&D in 2009 on the Chimigen platform and partnering activities.

Jonathan Goodman, president and CEO of Paladin, said: ViRexx spent over $30 million in developing its promising, innovative technology. Unfortunately, ViRexx got caught in this financial storm without the protection of cash.

We intend to continue ViRexx’s stated strategy of focusing resources on the Chimigen Platform while seeking outside partnerships for the T-ACT and AIT Platforms. We believe that our focused investment in Chimigen over the next 18 months may reward our shareholders through a lucrative partnering agreement.