VaxGen sells anthrax vaccine to its old rival

Thu, 08 May 2008 06:59:55 -0400

Reduced to a skeleton crew and a bleak outlook, South San Francisco-based VaxGen sold its experimental anthrax vaccine to its former chief rival, Emergent BioSolutions, for $2 million down and up to $8 million in milestones.

VaxGen began to founder in 2006 when the government revoked an $877 million contract for the VaxGen vaccine after the company failed to start a human trial on schedule. Now Emergent, which makes the only FDA-approved anthrax vaccine now available, says it plans to advance the experimental vaccine.

VaxGen, which once had more than 200 employees, has been reduced to a staff of about six after a planned merger with Raven biotechnologies fell through.

- here's VaxGen's release on the deal

VaxGen faces possible liquidation after merger flops

Thu, 03 Apr 2008 07:59:57 -0400

The spectacularly unsuccessful VaxGen has called off an effort to merge with Raven biotechnologies and says it may now have to liquidate. VaxGen tried and failed to develop an anthrax vaccine that could have garnered an $877 million government contract. The merger with Raven was seen as an 11th hour attempt to prevent the company from foundering. But with investors opposed to a merger, VaxGen said late last week that it will assess all options, including liquidation.

"We are obviously very disappointed that the proposed merger with Raven was not approved by our stockholders," said VaxGen CEO James Panek. "Despite the strong support of some institutions and solid support by so many individual investors, it has become quite clear that there is sufficient opposition, such that this merger will not be approved."

The anthrax vaccine was the company's latest failure. In 2003 VaxGen abandoned a years-long effort to develop an HIV vaccine. The anthrax vaccine effort was its second chance, but the government cut the contract at the end of '06 after a key trial failed.

- check out the release from VaxGen
- read the story in the San Jose Mercury News

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