V.I. Technologies to Merge with Panacos Pharmaceuticals

In a move to create a new company with a strong pipeline of products, Panacos Pharmaceuticals, Inc.(Gaithersburg, MD, USA) and V.I. Technologies, Inc. (Vitex, Watertown, MA, USA), have agreed to merge. Vitex is developing innovative anti-infective technologies to enhance blood safety.

Under the terms of the transaction, Vitex will issue 25 million common shares in exchange for all outstanding Panacos shares upon the close of the transaction. Vitex will issue up to an additional 20 million common shares to Panacos shareholders upon the successful completion of near-term clinical milestones for PA-457, a new HIV maturation inhibitor.

The merged company will have a strong pipeline of products for serious infectious diseases. These include Vitex's Inactine technology, currently in phase 3 clinical testing for the inactivation of pathogens in red blood cells, and Panacos' pipeline of novel therapeutic small-molecule antiviral drugs that include PA-457, currently in phase 1 clinical testing.

Samuel K. Ackerman, M.D., currently chairman of Vitex and chairman and acting CEO of Panacos, will be chairman and CEO of the combined company, which will use the V.I. Technologies and Vitex names. "Combining the technology platforms of Vitex and Panacos will create a dynamic new anti-infectives company developing innovative pharmaceutical products addressing major global healthcare problems,” commented Dr. Ackerman. "Clinical-stage products in the combined company will initially address markets exceeding U.S.$8 billion and have strong competitive and intellectual property positions.”




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