The trend of biotech start-ups reaching the stock market through a merger into a stock market shell company continued yesterday. Asia Development Ltd., which trades on the Tel Aviv Stock Exchange (TASE) at a NIS 25 million market cap, said that it signed a deal with vaccine developer Vaxil BioTherapeutics for the purchase of "a stock exchange platform to place Vaxil's operations into."
According to the notice to the TASE, Vaxil's valuation is estimated at $30 million for the purpose of the merger.
Vaxil develops vaccines to prevent cancer and other diseases.
Vaxil’s lead therapeutic vaccine, ImMucin, has received regulatory approval to enter a phase IIA clinical trial in 15 Multiple Myeloma patients and is scheduled to begin its soon. The company is also developing a vaccine against mycobacterium Tuberculosis (Mtb).
Shares in Asia Development rose 18.85% yesterday, and are up 26.2% today.
Published by Globes [online], Israel business news - www.globes-online.com - on October 4, 2010
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