GenVec and Diacrin Announce Merger

An agreement to merge and create a combined company with a strong product pipeline and significant financial resources has been announced by GenVec, Inc. (Gaithersburg, MD, USA) and Diacrin, Inc. (Charlestown, MA, USA).

Under the agreement, Genvec will acquire Diacrin in an exchange of stock valued at about US$40 million. Existing GenVec shareholders will own about 45.5% of the combined company, while Diacrin shareholders will own about 54.5%. The merger has been approved by the boards of both companies.

GenVec has developed patented adenovector technology called TVFerade to deliver tumor necrosis factor-alpha (TNF-alpha) gene directly into a tumor where it interacts with standard radiation therapy or chemotherapy. GenVec is also working on cardiology products, including Biobypass for severe coronary artery disease and cell therapy for congestive heart failure. Another product candidate is designed to prevent vision loss from macular degeneration.

Diacrin is focused on cell transplantation technology for treating diseases characterized by cell dysfunction or cell death. The company is developing myoblast transplantation for cardiac repair.

"This will be a stronger company with very promising product candidates, an excellent technology platform, and enhanced manufacturing capabilities,” said Thomas H. Fraser, Ph.D., president and CEO of Diacrin.





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