Intrexon picks up struggling GenVec to build delivery tech
- Maryland-based Intrexon Corp. has picked up the struggling biotech GenVec Inc., securing access to GenVec's adenovirus delivery technology in an all-stock deal announced Jan. 24.
- For every GenVec share they hold, the target's investors will receive 0.297 shares of Intrexon common stock. The deal thereby values GenVec stock at $7.00 per share.
- GenVec specializes in gene delivery through its AdenoVerse technology. The biotech, also based in Maryland, once traded in much loftier company, but a Phase 3 failure of its gene therapy candidate for pancreatic cancer in 2010 severely damaged its fortunes.
Intrexon hopes to build a "next generation of adenoviral delivery" through the acquisition of GenVec.
"GenVec has contributed significantly to advancements in gene therapy through its AdenoVerse technology, and over 3,000 clinical trial subjects have received their therapeutics and vaccines across the globe," said Thomas Reed, Intrexon's chief science officer.
Adding the adenoviral platform and cGMP manufacturing will help Intrexon in its efforts to develop an adenovrius with a higher payload capacity than current delivery methods.
"This next-generation delivery platform is anticipated to vastly exceed other viral delivery methods and accommodate Intrexon's advanced gene programming to target complex multi-gene disorders," explained Douglas Brough, GenVec's chief science officer, in a statement on the acquisition.
GenVec recently declared a one-for-ten reverse stock split to maintain its listing on the Nasdaq Capital Market exchange. The company has a partnership with Novartis to develop its lead candidate CGF166 for hearing loss and imbalance disorders.
Several other programs are in preclinical testing.
GenVec stock rose by 44% on Tuesday after the announcement of the deal. Intrexon shares continued their month-long slide despite the news.
- Intrexon Press release
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