Paladin acquires outstanding shares of ViRexx

MONTREAL Canadian drug maker Paladin Labs has acquired all outstanding shares of biotech firm ViRexx Medical Corp., Paladin announced Tuesday.

ViRexx, also a Canadian company, develops products using its Chimigen Vaccine Platform, T-ACT Platform for cancer-fighting drugs and the AIT Platform, also for developing cancer drugs. 

Paladin paid $1 million to existing ViRexx creditors, while former ViRexx shareholders could receive a payment of up to $2 million if certain conditions are met before Dec. 31, 2009.

"ViRexx spent over [$24.6 million] in developing its promising, innovative technology," Paladin president and chief executive officer Jonathan Goodman said in a statement. "Unfortunately, ViRexx got caught in this financial storm without a protection of cash."

Amounts in the original Paladin statement were quoted in Canadian dollars.