Virax completes purchase of Pathway Oncology

Virax Holdings (ASX:VHL) has completed the acquisition of US-based Pathway Oncology and its anticancer drug candidate GGTI-2418.

Virax has now issued 60 million new shares to Pathway Oncology shareholders. The terms of the deal, announced in March, also include the issue of up to a further 180 million shares contingent on the meeting of development milestones.

With the acquisition, Virax has secured an exclusive worldwide licence to GGTI-2418, a first-in-class cancer immunotherapeutic developed at Yale University and the Moffitt Cancer Center in Florida.

It inhibits the cancer growth enzyme geranyl-geranyl transferase I (GGTase I) and also blocks the Ral & Rho circuits in cancer cells.

Virax Executive Chairman Dr Wayne Millen said the company will now plan to launch phase II trials of the technology in breast cancer and multiple myeloma in the second quarter of 2015.

“The GGTI-2418 is an asset potentially synergistic with existing standards of care or as a monotherapy. It is a compelling acquisition which we believe holds great potential up-side for Virax shareholders,” he said.

Virax recently appointed experienced biotech executive Dr Rob Crombie as a new managing director. The terms of Crombie’s agreement with Virax states that his employment commences on the completion of the Pathway acquisition.

Virax Holdings (ASX:VHL) shares were trading 12.5% lower at $0.007 as of around 1 pm on Monday.