SOUTH
"We are very pleased to have completed the regulatory phase of this process, and are now on track for a stockholder vote and, I am confident, completion of the merger soon thereafter." Said James P. Panek, CEO and President of VaxGen.
Additionally, VaxGen and Raven have each made significant progress in the operational and planning activities necessary prior to the close of the merger and required to ensure momentum thereafter. This progress includes:
-- The implementation of a restructuring at Raven, resulting in a reduction in headcount of 15 percent. VaxGen has also completed a further modest headcount reduction. This positions the two companies to meet the objective of a combined continuing headcount of approximately 60, as stated in the announcement of the merger agreement on November 12, 2007. Raven and VaxGen believe the resources now in place position the companies to successfully pursue the stated drug development and financial objectives of the merged company. Raven continues to advance its near-term objectives, including preparation for the start of Phase 2 clinical trials for its lead product RAV12 as well as the advancement of two IND candidates. -- The Companies have established transition and integration plans and teams as they relate to information technology, human resource policies, financial systems and reporting and Sarbanes-Oxley compliance. -- A number of VaxGen scientists are now working on Raven projects under arms-length contractual arrangements. These arrangements serve to advance critical R&D projects and are expected to facilitate the post- close integration process. -- The companies have determined that dedicating the use of the VaxGen manufacturing facility to the Raven pipeline over the next two to three years is not the most economically attractive option, and therefore divestment or partnering of the facility is being actively pursued.
"Our goal for the merged company is to focus on advancing our pipeline of monoclonal antibodies directed against cancer stem cells, and these actions will allow us to do this in what we believe will be the most cost-effective manner possible," said George F. Schreiner, M.D., Ph.D., Raven's Chief Executive Officer. "We are confident that this merger will provide value to investors and, subject to a positive stockholder vote and satisfaction of the closing conditions, we look forward to combining our two companies."
About VaxGen
VaxGen is a biopharmaceutical company based in South
About Raven
Raven biotechnologies, inc. is a privately held biotechnology company
focused on the development of monoclonal antibody therapeutics for treating
cancer. Raven's lead product candidate, RAV12, targets adenocarcinomas and is
in clinical development for the treatment of gastrointestinal and other
cancers. Raven, which is based in South
Note: This press release contains "forward-looking statements" within the
meaning of the federal securities laws. These forward-looking statements
include, without limitation, VaxGen's and Raven's ability to meet the
conditions necessary to close the proposed merger between the two companies,
the benefits of the proposed merger, the ability to meet the stated drug
development and financial objectives of the merged company, and the ability to
and timing to successfully integrate Raven and VaxGen following consummation
of the merger. These statements are subject to risks and uncertainties that
could cause actual results and events to differ materially from those
anticipated. Additional information concerning these and other risk factors
is contained in VaxGen's Annual Report on Form 10-K for the year ended
Additional Information and Where to Find It
VaxGen has filed a registration statement on Form S-4, and a related proxy statement/prospectus, in connection with the merger. Investors and security holders are urged to read the registration statement on Form S-4 and the related proxy statement/prospectus because they will contain important information about the merger transaction. Investors and security holders may obtain free copies of these documents (when they are available) and other documents filed with the SEC at the SEC's web site at http://www.sec.gov. In addition, investors and security holders may obtain free copies of the documents filed with the SEC by contacting VaxGen Investor Relations at the email address: ir@vaxgen.com.
This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
VaxGen, Raven and their respective directors and executive officers may be
deemed to be participants in the solicitation of proxies from the stockholders
of VaxGen in connection with the merger transaction. Information regarding
the special interests of these directors and executive officers in the merger
transaction is included in the proxy statement/prospectus described above.
Additional information regarding the directors and executive officers of
VaxGen is also included in VaxGen's definitive proxy statement for its 2007
Annual Meeting of Stockholders which was filed with the SEC on
SOURCE VaxGen Inc.