Corixa Corp. to buy Coulter Pharmaceutical Inc. for 150.39 times revenue, The

Weekly Corporate Growth Report, Oct 23, 2000

The Deal: The Corixa Corp. has agreed to purchase Coulter Pharmaceutical Inc. for $812.1 million in stock. Both companies are specialists in the emerging field of immunotherapy. After news of the acquisition was announced, shares of Corixa fell $4.50 to $39.69, while Coulter shares rose $3.94 to close at $34.88. '

Discussion: Coulter Pharmaceutical Inc. is a development-- stage drug company that is using therapeutic antibodies, tumor-activated peptide drugs and other technologies to develop new treatments for cancer. The company has applied for FDA approval of lead candidate, Bexxar, for use in treating non-Hodgkin's lymphoma; if approved by the FDA, the drug could become the first radioimmunotherapy cancer treatment in the United States. Coulter Pharmaceutical is also developing an oncologics program and treatments for arthritis, lupus and psoriasis. The firm plans to directly market and sell its products in the United States.

The Corixa Corp. focuses on T-cell vaccines for treating and preventing cancer and infectious diseases. Melacine, a vaccine for late-stage melanoma, is for sale in Canada and in clinical trials in the United States. Corixa is developing vaccines for breast, prostate, ovarian and colon cancers with support from SmithKline Beecham The firm also develops adjuvants, which are added to existing medicines to enhance their efficacy; MPL, for use in allergy vaccines, is in clinical trials. Other drug candidates target rheumatoid arthritis, multiple sclerosis and psoriasis.