PharmAthene and Theraclone agree merger

USA-based biodefense company PharmAthene (NYSE MKT: PIP) and privately-held monoclonal antibody specialist Theraclone Sciences have entered a definitive agreement for their merger in an all-stock transaction.

The merger has been unanimously approved by both boards of directors and is subject to shareholder and regulatory approval, and other customary closing conditions. Under the terms of the accord, a wholly-owned subsidiary of PharmAthene will merge into Theraclone in an all-stock transaction. PharmAthene will issue common stock to Theraclone stockholders such that Theraclone stockholders will own 50% of the combined company.

The combined company will be a fully-integrated and diversified biologics company with four clinical-stage product candidates targeting high-value commercial and government markets. The merged company will combine vaccine and human monoclonal antibody expertise with a focus on infectious diseases and oncology, and will feature a robust discovery pipeline with four pre-clinical programs and multiple discovery candidates, along with three partnered products.