Corixa Corp. purchases Ribi ImmunoChem Research, Inc. for 9.67 times revenue

Weekly Corporate Growth Report, Nov 8, 1999

The Deal: Corixa Corporation has announced that it has completed its acquisition of Ribi ImmunoChem, Inc. in a $58.5 million stock swap. In June, Corixa had offered a $56.3 million bid consisting of $47.5 million in stock and $8.8 million in cash. In accordance with the terms of the agreement, Corixa will exchange 0.1685 of its shares for each Ribi ImmunoChem share.

Discussion: Ribi ImmunoChem develops biopharmaceutical products that stimulate the immune system to generate a cascade of natural agents and signals to treat and prevent human diseases. Ribi ImmunoChem's immune-stimulants can be combined with disease-specific antigens and may direct the immune system to respond to a particular cancer or can be used to modulate the immune response, which may prevent conditions such as septic shock. The company is also involved in custom formulation and the sale of research products.

Corixa Corporation focuses on T-cell vaccines for treating and preventing cancer and infectious diseases. Its vaccines for the treatment of breast, prostate, ovarian, lung and other cancers are in research, preclinical studies and in Phase I clinical trials. Corixa's corporate partners include SmithKline Beecham and Rhone-Poulenc subsidiary Pasteur Merieux Connaught, which the company teamed up with on preclinical studies of a vaccine additive to boost immune response for infectious diseases.

Corixa is currently working with Abbott Laboratories to develop diagnostics for tuberculous. Through several acquisitions, Corixa has gained expertise in various areas, such as rheumatoid arthritis treatments and non-vaccine gene therapies.