Nabi Shareholders Approve Deal With Glaxo
From Associated Press (March 2, 2010)
ROCKVILLE, Md. -- Nabi Biopharmaceuticals said Tuesday shareholders approved its option and license agreement for the smoking vaccine candidate NicVAx with GlaxoSmithKline.
More than 73 percent of Nabi’s outstanding shares were voted in favor of the transaction, and of the shares that were voted, more than 99 percent were in favor of the deal.
In November, GlaxoSmithKline and Nabi Biopharmaceuticals said they will develop vaccines to help smokers quit in a deal that could be worth more than $500 million.
Nabi is developing NicVAx, which is intended to train the immune system to make antibodies that will attach themselves to nicotine. The goal is to keep the nicotine molecules from reaching the brain.
Nabi will get $40 million upfront and complete testing of NicVAx. GlaxoSmithKline, which is based in London, will also start developing a second-generation version of the vaccine.
Nabi could receive milestone payments for successful testing, regulatory approval and sales targets, as well as royalties of more than 10 percent on sales. The companies said those payments could reach more than $500 million.
Nabi said it expects to meet closing requirements for the deal by the end of the first quarter.
Shares of Nabi rose 2 cents to $5.44 in afternoon trading. Shares of GlaxoSmithKline rose 32 cents to $37.35 in afternoon trading.
Posted: March 2010