AVI BioPharma Announces Acquisition of Ercole Biotech
March 13 2008 - 4:00AM
Business Wire
AVI BioPharma, Inc. (Nasdaq:AVII) and privately held Ercole
Biotech, Inc. today announced the execution of a definitive merger
agreement pursuant to which AVI will acquire Ercole, a pioneer in
developing drugs to directed alternative RNA splicing. AVI and
Ercole have collaborated since December 2006 to develop drug
candidates including AVI-4658, which is in clinical testing in the
United Kingdom for treatment of Duchenne muscular dystrophy (DMD).
Under the terms of the agreement, AVI will issue up to $7.5 million
in AVI common stock valued at $1.3161 per share in exchange for all
outstanding shares of Ercole stock not already owned by AVI. In
addition, AVI will assume responsibility for up to $1.5 million in
liabilities of Ercole, to be paid by a combination of cash and AVI
stock. Liabilities in excess of $1.5 million will be deducted from
the $7.5 million in common stock. The transaction is expected to
close by March 21. �The acquisition of Ercole is a major step
toward AVI�s goal of becoming the preeminent developer of drugs
that modify RNA splicing,� said Leslie Hudson, Ph.D., Chief
Executive Officer of AVI. �This therapeutic approach takes
advantage of a fundamentally important mechanism � alternative RNA
splicing � for therapeutic intervention. We believe this
intervention can correct genetic mutations in situ or produce
clinically desirable variants of relevant therapeutic proteins in
vivo. Our acquisition of Ercole brings us significant scientific
expertise and fundamental patents to help us reach this goal.� AVI
refers to this novel therapeutic approach as ESPRIT (Exon Skipping
Pre-RNA Interference Technology). AVI believes that its morpholino
chemistry is particularly useful in modifying splicing of RNA
because molecules based on this chemistry do not appear to degrade
targeted RNA and do not appear to lead to down-regulation of the
target gene. In addition, AVI has proprietary technology to direct
delivery of drugs preferentially to specific organs in the body.
�We are excited about joining forces with AVI and combining the
complementary strengths of the two companies to develop
splice-directing drugs,� said Ryszard Kole, Ph.D., President and
founder of Ercole Biotech. �Recent discoveries have shown how
prevalent alternative splicing is in nature, providing a multitude
of promising drug targets. We are committed to exploiting this
mechanism for practical outcomes, which can be used to benefit
patients with a variety of diseases.� About ESPRIT In normal
genetic function, gene transcription produces a full-length
pre-mRNA molecule that is processed to a much shorter and
functional messenger RNA (mRNA). This mRNA is the template for
creating a protein. During pre-mRNA processing, packets of useful
genetic information, called exons, are snipped out of the
full-length RNA and spliced together to make the functional mRNA
template. Technology developed by AVI and Ercole allows the
targeting of splicing elements in pre-mRNA to achieve removal or
retention of designated exons in the alternatively spliced mRNA. As
a result, the desired protein is translated from the mRNA and the
production of the undesirable one is prevented. The Importance of
RNA Splicing Through the Human Genome Project and subsequent
studies, the way in which the body controls cellular processes has
become clearer. Rather than just turning gene expression on and
off, we now understand that cells create enormous diversity in how
proteins are constructed � diversity that stems from variances in
how mRNA is spliced. Alternative splicing explains how the 26,000
genes in the human genome result in 150,000 different proteins. In
some cases, alternative forms of the same protein � made from
splicing together different combinations of exons � may have
completely opposing functions from one another. One version of a
protein may contribute to disease pathology, whereas tipping the
balance to a different splice variant may provide therapeutic
benefit. In other cases, such as Duchenne muscular dystrophy (DMD),
gene mutations impair the cell�s ability to correctly splice RNA
that codes for a critical protein. In this situation, it appears
that creating an alternatively spliced form can restore protein
function. The ability to direct mRNA splicing is a powerful
platform for creating new drugs with the potential for treating a
wide range of genetic and acquired diseases. About Duchenne
Muscular Dystrophy Duchenne muscular dystrophy is an ultimately
fatal disorder that is characterized by rapidly progressing muscle
weakness and atrophy of muscle tissue starting in the legs and
pelvis and later affecting other sites in the body, including the
diaphragm and heart. DMD is the most common form of muscular
dystrophy, affecting one in 3,500 young males. An estimated 17,000
boys and young men are afflicted with DMD in the U.S. alone. Women
can be carriers of DMD but usually exhibit no symptoms. DMD is
caused by mutations in the dystrophin gene, which encodes a protein
that is essential to the structure and function of muscle cells.
There is no known effective treatment for DMD, and most patients
with DMD die of respiratory and/or heart failure. Conference Call
AVI BioPharma has scheduled an investor conference call regarding
this announcement to be held today, March 13, 2008 beginning at
11:00 a.m. Eastern time (8:00 a.m. Pacific time). Individuals
interested in listening to the conference call may do so by dialing
(888) 803-8271 within the U.S. and Canada, or (706) 634-2467 for
international callers. A telephone replay of the conference call
will be available for 48 hours beginning within two hours of the
conclusion of the call, by dialing (800) 642-1687 for domestic
callers, or (706) 645-9291 for international callers, and entering
reservation number 39212730. The live conference call also will be
available to private investors via the Internet at www.avibio.com.
A replay of the call will be available on the company�s Web site
for 14 days following the completion of the call. A slide
presentation will accompany conference call commentary and will be
available 30 minutes before the call on the company�s homepage at
www.avibio.com. About AVI BioPharma AVI BioPharma develops
therapeutic products for the treatment of life-threatening diseases
using third-generation NEUGENE� antisense drugs and ESPRIT exon
skipping technology. AVI�s ESPRIT technology is initially being
applied to potential treatments for Duchenne muscular dystrophy.
AVI�s NEUGENE compounds are also designed to treat cardiovascular
restenosis in stent and coronary artery bypass graft (CABG)
procedures. In addition to targeting specific genes in the body,
AVI�s antiviral program uses NEUGENE antisense compounds to combat
disease by targeting single-stranded RNA viruses, including Marburg
Musoke and Ebola Zaire viruses. More information about AVI is
available at www.avibio.com. �Safe Harbor� Statement under the
Private Securities Litigation Reform Act of 1995: The statements
that are not historical facts contained in this release are
forward-looking statements that involve risks and uncertainties,
including, but not limited to, the results of research and
development efforts, the results of preclinical and clinical
testing, the effect of regulation by the FDA and other agencies,
the impact of competitive products, product development,
commercialization and technological difficulties, and other risks
detailed in the company�s Securities and Exchange Commission
filings.
Avi Biopharma (NASDAQ:AVII)
Historical Stock Chart
From Jun 2024 to Jul 2024
Avi Biopharma (NASDAQ:AVII)
Historical Stock Chart
From Jul 2023 to Jul 2024