AVI BioPharma Announces Close of Ercole Biotech Acquisition
March 24 2008 - 11:53AM
Business Wire
AVI BioPharma, Inc. (Nasdaq: AVII) today announced the closing on
March 20, 2008 of the previously announced merger transaction
between AVI and Ercole Biotechnology Inc. Under the terms of the
agreement, AVI is issuing $7.4 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 has assumed
responsibility for $1.5 million in liabilities of Ercole, to be
paid by a combination of cash and AVI stock. 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 combination of exons � may have opposing
functions. One version of a protein may contribute to disease
pathology, whereas another 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. It is this last approach � that of
RNA repair � which underpins AVI�s ongoing clinical trials in DMD.
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. About AVI BioPharma AVI BioPharma develops
therapeutic products for the treatment of life-threatening diseases
using third-generation NEUGENE� antisense drugs and ESPRIT
alternative RNA splicing 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.
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