CytoDyn to acquire Progenics' PRO 140

Development-stage  biotech firm CytoDyn (OTCQB: CYDY), has entered into a asset purchase agreement with fellow USA-based Progenics Pharmaceuticals (Nasdaq: PGNX), effective as of July 25, 2012, under which it intends to acquire Progenics’ proprietary humanized monoclonal antibody HIV viral-entry inhibitor drug candidate, PRO 140. News of the deal pushed CytoDyn’s shares up 8.25% to $1.05.

"We believe that adding PRO 140 to our pipeline of potential anti-viral therapeutics along with Cytolin [a monoclonal antibody that uses the human immune system to control HIV infection], which we are already developing, will position the company as one of the leading companies in the development of monoclonal antibody-based therapies for HIV/AIDS," commented Gregory Gould, chairman of the CytoDyn board, adding: "We intend to move forward with the necessary clinical trials to bring both of these potential treatments for HIV to market; and, if we are successful in the development of one or both of these therapies, this could lead to a paradigm shift in the treatment of HIV/AIDS with significant benefits for patients worldwide."

Deal involves $3.5 million upfront plus milestones