Panacea Biotec will acquire 14.5 per cent stake in PharmAthene Inc, a US-based biodefence company that develops medical counter-measures against threats from biological and chemical weapons, for $13.1 million through a wholly-owned subsidiary, Kelisia Holdings.
A Panacea statement said that Kelisia will purchase approximately 3.73 million shares of PharmAthene for $3.50 per share.
Upon closure, Kelisia will also receive 12-month warrants to purchase upto approximately 2.75 million additional shares of PharmAthene for $5.10 per share, thereby increasing its stake to 19.99 per cent. The transaction is expected to close within three weeks. PharmAthene will get the first right of negotiation for US distribution of certain biodefence products of Panacea.
and may enter into discussions with the company regarding potential strategic collaborations that could include development and manufacturing by Panacea of certain PharmAthene biodefence products.
Panacea has agreed not to purchase additional PharmAthene shares without the US firm's prior consent for the next three years. The Panacea subsidiary will be granted limited rights to participate in future private financing by PharmAthene to maintain its then ownership level. In addition, PharmAthene will retain full rights to its proprietary information and technology and full management and operational control.
