GlaxoSmithKline has announced the execution of a definitive agreement pursuant to which GSK will acquire Corixa Corporation, a developer of innovative products that regulate immunity, based in Seattle, WA (USA).
The acquisition is structured as a cash for stock transaction, with the shareholders of Corixa entitled to receive $4.40 per common share, representing a total value of approximately $300 million. The transaction, which has been unanimously approved by Corixa's Board of Directors, is subject to approval of its shareholders, regulatory clearance and certain other conditions. GSK owns approximately 8% of the outstanding Corixa shares and additional holders of approximately 11% of the shares have agreed to vote their shares in favor of the transaction. The transaction is expected to close in the third quarter of this year.
As a result of the acquisition, GSK will acquire all scientific and business programs, activities, assets and all related rights of Corixa. Importantly, GSK will acquire Corixa's manufacturing facility in Hamilton, MT (USA) which produces Monophosphoryl Lipid A (MPL), a novel adjuvant contained in many of the vaccines in GSK's pipeline. Furthermore GSK will no longer incur royalties and other costs under the existing agreements in place between GSK and Corixa nor will GSK incur royalties on future sales of their vaccines containing MPL.