Cambridge Biotech Consummates Sale

US company Cambridge Biotech Corp says it has now consummated its plan of reorganization under Chapter 11 (for which it filed in July 1994) and that it has been sold to bioMerieux Vitek Inc, for $5.85 million in net cash (Marketletters passim).

As a wholly-owned subsidiary of bio-Merieux, CBC will continue to operate its retroviral diagnostic business, principally focused on the development and sales of diagnostic kits for diseases caused by retroviruses. The retroviral business includes manufacturing operations in Rockville, Maryland, and intellectual property including CBC's patented CBre3 antigen for detection of HIV-1 as well as 38 other licenses and sublicenses.

Ahead of closing the sale, CBC transferred its therapeutic assets to a newly-formed company, Aquila Biopharmaceuticals Inc. As part of the reorganization, CBC shares will be exchanged for shares in Aquila. CBC has ceased trading but will resume on the Nasdaq under the symbol AQLA. Aquila is developing and commercializing products which stimulate the immune system for use in certain infectious diseases and specific cancers. Therapeutic products include the Stimulon family of adjuvants, the most advanced of which, QS-21, is in clinical development.