Pharmexa to acquire GemVax

Pharmexa (CSE:PHARMX) plans to acquire cancer vaccine company GemVax (Porsgrunn, Norway) for 1.4 million shares and DKK 33 million ($5.7 million) in convertible notes. Based on PHARMX's close of DKK 28 on April 11, the stock portion is worth DKK 39.2 million ($6.8 million), and the deal is valued at DKK 72.2 million ($12.5 million).

GemVax's GV1001 pancreatic cancer vaccine is expected to enter two open-label Phase III trials in 2006. If GemVax begins the Phase III TeloVax trial of GV1001 by Sept. 30, 2006, the notes will convert into PHARMX stock. If the milestone is not met, the debt will be extinguished. ...