Inovio to merge with VGX in all-stock deal

Inovio Biomedical Corp, a US developer of electroporation-based DNA vaccine delivery technology, has signed a definitive merger agreement with privately-held DNA vaccine developer VGX Pharmaceuticals.

As part of the deal, Inovio will issue securities in exchange for all of the outstanding securities of VGX. Each company's board of directors has approved the merger and the all-stock transaction it contemplates. The deal is subject to completion of the registration of the Inovio securities to be issued with the US Securities and Exchange Commission, receipt of approval from both companies' stockholders and other customary conditions. The firms expect to complete the merger in the fourth quarter of the year. Upon closing, Inovio will change its name to VGX Pharmaceuticals.

The combined company is expected to be led by Joseph Kim as president, chief executive and a director, with former Inovio CEO Avtar Dhillon serving as a consultant and a director. The new headquarters will most likely be located in Blue Bell, Pennsylvania, along with the firm's DNA vaccine R&D operation. A facility in San Diego, California will focus on electroporation R&D and engineering.