Oxford BioMedica buys Oxxon Therapeutics for GBP16 million

Oxford BioMedica said that Oxxon's technology has broad product applications in cancer and infectious diseases and will create new licensing opportunities. Oxxon's lead cancer vaccine, Hi-8 MEL, has completed a phase II trial in melanoma, the only solid tumor that cannot be treated with Oxford BioMedica's TroVax, the company added.

Professor Alan Kingsman, chief executive of Oxford BioMedica, said: “The acquisition expands our immunotherapy pipeline and strengthens our intellectual property position in the field of immunology.”

Oxxon's Hi-8 MEL vaccine has generated encouraging phase II results as a treatment of advanced melanoma, according to the company. The market opportunity for an effective melanoma vaccine is substantial and this is a cancer type where Oxford BioMedica's immunotherapy, TroVax, cannot be developed because, unlike the vast majority of human tumours, melanomas do not have 5T4 on the surface of the tumor cells.

The deal will be financed by the issue of 27.6 million Oxford BioMedica shares to Oxxon shareholders for the entire share capital of Oxxon and 4.2 million shares for the repayment of a loan from Oxxon shareholders to Oxxon. Oxford BioMedica will also receive Oxxon's assets, valued at approximately GBP3.8 million.

Oxxon's key investors, who as a result of the transaction will have an interest in Oxford BioMedica shares, are the venture capital firms Quester, MVM Life Science Partners and US-based East Hill Management.