Boston, MA 05/13/2014 (wallstreetpr) – The cancer drug developer Telik, Inc. (NASDAQ:TELK) has agreed to merge into MabVax Therapeutic, a privately-held company that also develops cancer drugs and already has a rich product pipeline.
The all-stock transaction will see MabVax assume the control of the combined company with 80 percent stake. MabVax will also management the combined company that will be named MabVax Therapeutic Holdings. The combined company will be mainly focused on the development of immunotherapy-based cancer treatment and diagnostic products.
The current president and CEO of MabVax J. David Hansen will hold the same position in the combined company. He will also become the chairman of the board of directors. The current CEO of Telik, Inc. (NASDAQ:TELK), Michael M. Wick, will be a board member of the combined company.
Finer details withheld
Though the company announced their agreement to merge towards forming a formidable force in the cancer treatment space, they withheld the financial details of the deal and only announced that MabVax will assume all the shares, options and warrants of Telik, Inc. (NASDAQ:TELK).
Shares of Telik are trading around $1.58 per share.
Cancer therapy
Telik, Inc. (NASDAQ:TELK) and MabVax are both focus on cancer therapy, and the companies expect their combined forces to enrich their product portfolio while also lending support to the development of new products. The companies also expect their respective product pipelines to gain study support following the tie-up because of the enhanced capacity and technological ability.
Furthermore, the combination of the companies that already boast reputable research and development teams should lead to improved search activities as well as efficiency in the research division.
Executives of MabVax expect the acquisition of Telik, Inc. (NASDAQ:TELK) to add to their side a drug with FDA orphan designation as well as financial advantages because of the expanded market.
Telik, Inc. (NASDAQ:TELK) will add to the combined company some Phase 3-ready drugs that include Telintra that targets treatment of a form of leukemia that is characterized with insufficient production of one or more of the blood elements namely platelets, white blood cells and red blood cells. The company also has Telcyta, a drug targeted for the treatment of various forms of cancer such as lung cancer, breast cancer, advanced ovarian cancer and colon cancer.
Investors of Telik, Inc. (NASDAQ:TELK) responded positively to the merger announcement, sending shares up more than 26 percent by early afternoon Tuesday.
