Micromet AG and CancerVax to merge, with German firm dominant partner

CancerVax Corp, a California, USA-based biotechnology company focused on the research, development and commercialization of novel biological products for the treatment of cancer, and Micromet AG, a German privately-held biopharmaceutical firm focused on the development of antibody-based drugs, have signed a definitive merger agreement approved by both firms boards of directors.

The merger is expected to create a transatlantic, Nasdaq-listed company with a highly-differentiated drug development pipeline focused on oncology, autoimmune and inflammatory diseases, as well as a strong, proprietary technology base for the development of antibody-based product candidates.

Under the terms of the deal, CancerVax will issue, and Micromet stockholders will receive, shares of the US firm's stock such that Micromet shareholders will own approximately 67.5% of the combined group, on a pro forma basis, and CancerVax investors will receive about 32.5%. It is anticipated that, on a pro forma basis, cash, cash equivalents and securities available-for-sale for the combined companies as of December 31, 2005, will be between $57.0-$60.0 million.