Biota to Acquire Antibacterial Assets of MaxThera

Biota Holdings has announced the acquisition of the assets and drug development programs of MaxThera, an antibacterial drug discovery company located in Boston, US. The acquisition is subject to the satisfaction of certain conditions which the former anticipates will be met in the near future.

Under the terms of the Agreement, Biota will acquire the assets of MaxThera for US$1.2 million in cash and US$300,000 in the former’s shares. The shares will be issued following completion and will be released from escrow to the latter’s shareholders in two equal tranches at six and twelve months. Shareholders are also entitled to receive 12 percent of all upfront and milestone payments received by Biota if the two main programs are licensed.

Biota intends to accelerate the development of the lead program and invest up to US$15 million, assuming development milestones are achieved. The investment will be in approximately equal instalments over the next three to five years.