Viropro signs of Letter of Intent to acquire NovaRx

USA-based Viropro (OTCBB: VPRO) says it has signed a non-binding Letter of Intent for the acquisition of NovaRx, a San Diego-based pioneer in immuno-oncology, in an all-stock transaction that is expected to close by year-end, subject to the approval by both companies of definitive documents and the achievement of certain other milestones.

The Letter of Intent is non-binding and may be terminated by either party based on failure to comply with its terms or upon 30 days written notice by either party.

NovaRx has developed a proprietary method of activating the body's immune system to recognize and destroy cancer cells. In a Phase II trial, the company demonstrated a significant improvement in survival for patients with non-small cell lung cancer. A multi-site, multinational Phase III trial did not achieve its desired endpoint, an outcome the company believes is attributable to protocol violations at a number of sites in Eastern Europe and elsewhere. The company's management believes that a properly designed and administered Phase III study will result in a statistically significant demonstration of progression free survival that will be suitable for regulatory approval. Subject to raising sufficient capital, the company intends to initiate that trial in accordance with standard Food and Drug Administration procedures.