Transgene SA (Paris:TNG) (NYSE-Euronext: TNG) said today that it welcomed the announcement by SillaJen, Inc. of its intention to acquire Jennerex, Inc. and has consequently given its consent to the definitive merger agreement. The agreement is subject to normal closing conditions and completion of financing by SillaJen. Including potential future milestone payments, total consideration for the all-cash transaction could reach approximately $150 million. Transgene owns approximately 8.5% of Jennerex on a fully diluted basis and would thus be entitled to receive approximately 8.5% of these monies. The development and commercialization agreement for Pexa-Vec oncolytic virotherapy between Transgene and Jennerex will remain intact, with SillaJen taking over Jennerex's responsibilities.
"We are very pleased about the planned acquisition of Jennerex by SillaJen, a long-time shareholder of Jennerex," said Philippe Archinard, Chairman and Chief Executive Officer of Transgene. "SillaJen has been very supportive of the Pexa-Vec program and Transgene's critical role as a development and commercialization partner and has expressed a strong commitment to funding Pexa-Vec's continued development. We look forward to working with the SillaJen team to advance the development of this important immunotherapy candidate in liver cancer and other cancers types."
Transgene is actively collaborating with SillaJen and the other development and commercialization partners for Pexa-Vec to finalize a clinical development plan for this program.