Biomira Paying $3 Million in Cash, Plus Stock and Milestones for ProIX Pharmaceuticals

Biotechnology company Biomira Inc. said Tuesday it bought privately held ProIX Pharmaceuticals Corp. in a cash and stock deal.

The Canadian company said it will pay $3 million in cash and just under 17.9 million shares of common stock for ProIX, which is based in Tucson, Ariz., and Houston. Additionally, Biomira will pay an another $5 million worth of common stock when ProIX starts a Phase III clinical trial of a product. Another payment of $10 million in common stock is due upon approval of a product for a major market.

ProIX is developing novel cancer treatments. Biomira said the acquisition will help boost its clinical development programs, which also focus on treating solid tumors.

ProIX is expected to have one product, called Stimuvax, in Phase III clinical trials by year end.

Shares of Biomira rose 9 cents, or 7.7 percent, to close at $1.26 on the Nasdaq. The stock has traded between 85 cents and $2 over the past year.