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news.IDM Pharma has entered into a definitive agreement to sell specific assets related to its infectious disease programs and certain other assets to Pharmexa A/S for $12 million in cash.
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In a statement, IDM said that the transaction enables the company to focus on its five clinical-stage cancer programs, reduce its cash burn and increase its cash position.
IDM and Pharmexa will enter into two separate license agreements, which guarantee IDM continuing rights to use the PADRE and Epitope Identification System (EIS) technologies, included in the assets to be acquired by Pharmexa, in the cancer field.
In addition, the companies will enter into a three-year services agreement, which assures IDM of certain services required for ongoing clinical trials of its investigational therapeutic vaccine EP-2101 for the treatment of non-small cell lung cancer, as well as access to expertise and know-how related to epitope identification.
The transaction, which is expected to reduce IDM’s projected cash burn by approximately $3 million annually, includes the assumption by Pharmexa of IDM’s current lease at its San Diego facility and the transfer of 27 IDM employees to Pharmexa. The deal is scheduled to close on or about December 31, 2005, subject to certain closing conditions.
“We are now able to redirect resources to our most advanced clinical programs in cancer, including our lead product candidate, Junovan, which has completed phase III trials for the treatment of osteosarcoma, a bone cancer diagnosed mainly in adolescents,” commented Jean-Loup Romet-Lemonne, chairman and CEO of IDM.