Emergent BioSolutions to buy Trubion Pharma for up to $135.5 million; reaffirms 2010 guidance

US vaccine maker Emergent BioSolutions has entered into a definitive agreement to acquire Trubion Pharmaceuticals, for upfront consideration of $96.8 million and up to $38.7 million of success-based milestones, resulting in a total consideration of up to $135.5 million in cash and stock.

Trubion's shares leapt 49% to $4.48 in after-hours trading, while those of Emergent were unchanged at $18.50.

The acquisition will diversify Emergent's product development pipeline with the addition of Trubion's two clinical-stage product candidates focused on the targeted disease areas of oncology and autoimmunity, the company said. It also offers novel platforms, consisting of proprietary Small Modular Immunopharmaceutic (SMIP and SCORPION technologies, for developing additional innovative therapeutic candidates.

Upon closing, which is expected in the fourth quarter, the transaction is expected to provide around $20 million in cash, net of customary closing costs, and $70 million of net operating losses (NOLs) that are expected to be used over the next 10 years.