OraVax Shareholder Rights Plan Approved

The board of OraVax, which recently dropped development of its HNK20 forRSV infection in infants, has approved a shareholder rights plan to help prevent coercive or unfair takeover practices. The preferred stock purchase rights will be distributed April 15, as a dividend at one right for each share of the company's outstanding stock as of the close of business that day.

The plan calls for the rights to be exercisable only if a person or group has acquired ownership of 20% or more of the company's common stock or announces a tender or exchange offer that would lead to a person or group owning 30% of common stock. The rights will expire on April 17, 2007, unless redeemed, exchanged or terminated earlier. OraVax said the rights plan will not restrict its ability to consider a takeover on favorable terms. A reorganization to cut expenses is also planned.