RXI Pharma inks option accord to buy MirImmune

US biotech company RXi Pharmaceuticals (Nasdaq: RXII) has entered into an exclusive option agreement to acquire all outstanding capital stock of MirImmune, a privately-held company focused on the development of next generation immunotherapies for the treatment of cancer.

Under the terms of the accord, RXi would issue stock equal to 19.99% of its outstanding shares plus additional consideration tied to milestones. RXi Pharmaceuticals can exercise the option to acquire MirImmune on the terms set forth in the option agreement at any time prior to April 5, 2017 but has no obligation to do so. Shares of RXI fell around 8.5% to $1.56 shortly after the announcement.

MirImmune was co-founded by Tim Barberich, founder and former chairman and chief of Sepracor. In early 2015, RXi and MirImmune entered into an exclusive license agreement to RXi's novel and proprietary sd-rxRNA technology for use in developing innovative cell-based cancer immunotherapies. MirImmune's progress in cell therapy using RXi's RNAi technology during the past 18 months forms a strong foundation for therapeutic development in the immuno-oncology space. If RXi exercises its option to acquire MirImmune, the acquisition would enable RXi to expand its pipeline and enter into the rapidly expanding field of immuno-oncology using the unique competitive advantages of sd-rxRNA technology.