In a move set to bolster its position in the biotechnological field, BioVaxys Technology Corp. has announced the acquisition of the complete technology portfolio of the former IMV Inc. But what does this acquisition include, and what are the terms driving this deal? The purchase comprises a range of assets in various stages of development across immunology-related disciplines, leveraging the DPX immune educating platform technology.
BioVaxys Technology Corp. has made a strategic leap forward with the acquisition of the full technology portfolio of IMV Inc., encompassing assets across oncology, infectious disease, and other immunology areas. This move taps into IMV’s DPX platform, a technology with a track record in immune education.
President & Chief Operating Officer of BioVaxys, Kenneth Kovan, expressed confidence in the transaction, citing the “tremendous commercial potential” of the DPX platform. The acquisition promises to pave the way for novel immunotherapeutics, not only for BioVaxys but potentially for other companies through partnerships.
The financial framework of the deal includes an upfront payment of US$750,000 in cash by BioVaxys. This is accompanied by additional payments pegged to clinical development and regulatory milestones, as well as a 15% share in future licensing revenues and a 6% gross sales royalty on product sales.
A notable clause in the agreement is the option for these future gross sales royalties to be cancelled and extinguished with a one-time payment of US$25 million in cash if BioVaxys chooses to do so. This provision offers a clear path to cap the royalties should the acquired technology prove highly successful.
In addition to these cash transactions, BioVaxys will issue common stock shares valued at US$250,000, the price of which will be determined by the volume-weighted average price of the shares in the 20 trading days prior to the deal’s closing. It’s worth noting that these shares will be subject to a regulated holding period.
HIMV, the entity representing the former IMV interests, will gain an observer seat on the BioVaxys Board of Directors. This arrangement ensures ongoing input and oversight into the development and commercialization of the DPX platform technologies.
The acquisition by BioVaxys is a testament to the company’s commitment to expanding its portfolio and enhancing its capabilities in developing immunological treatments. With the backing of the DPX platform’s strong scientific foundation, BioVaxys is poised to make significant strides in the biotechnology industry, offering new hope in the fight against cancer, infectious diseases, and beyond.
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