Murphy's law has been enveloping VaxGen Inc. Its latest negative came Friday, after the cash-strapped biopharmaceutical company had to
terminate a deal, reporting strong shareholder opposition to a proposed
merger with privately held Raven Biotechnologies Inc. Opposition was led by MedCap Management & Research LLC (a 4.8% shareholder) managing partner Fred Toney. The deal fell apart despite VaxGen's attempts to
discredit MedCap: "MedCap presents a financial analysis which is both incorrect and shallow, selectively extracting information from VaxGen's 2007 financial statements and misrepresenting its meaning," VaxGen CEO James Panek said in a letter to shareholders.
The $84 million proposal didn't even make it to a shareholders' meeting. Toney did tell the San Jose Mercury News that they're
open to any and all possibilities, including liquidation, sale or merger of the company. VaxGen was said to have looked at over 100 companies for a merger partner, so that last option doesn't seem likely.
In 2003, San Francisco-based VaxGen gave up on attempts to create an HIV vaccine. And after getting $101.2 million in 2002 and 2003 from the government as part of post-9/11 counterterrorism program,
Project BioShield, to develop an anthrax vaccine, the government pulled a record $877.5 million contract from the company in 2006 after the vaccine didn't meet requirements. The OTC
stock traded up Monday almost 12% to 47 cents. -
Baz HiralalGo to the story from TheDeal.comGo to the story from MercuryNews.com
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