GlaxoSmithKline to acquire ID Biomedical for C$35 per share

By Jennifer Chiou

New York, Sept. 7 - GlaxoSmithKline plc and ID Biomedical Corp. announced a definitive agreement under which GlaxoSmithKline will acquire ID Biomedical.

The agreement entitles ID Biomedical shareholders to receive C$35.00 per share, a 13% premium over the Sept. 6 closing price, for a total of C$1.7 billion.

GSK will also assume ID Biomedical's net debt of $77 million as of June 30 and will loan ID Biomedical up to $120 million to repay term debt and finance its cash requirements to the anticipated closing date in late 2005 or early 2006.

ID Biomedical shareholders must approve the acquisition, which has been approved unanimously by both companies' boards.

"GSK has moved quickly over the past few months to meet the growing demand for flu vaccines worldwide and to transform GSK into one of the leading global influenza vaccine manufacturers," said Jean-Pierre Garnier, chief executive officer of GlaxoSmithKline, in a news release.

"The proposed acquisition of ID Biomedical is a unique strategic opportunity to increase current capacity of classic flu vaccines, to provide us with increased capacity for next generation flu vaccines under development and to help GSK prepare for the threat of a flu pandemic."

The company said the proposed acquisition would bring selected candidate vaccines under development by ID Biomedical - FluINsure, StreptAvax and PGCvax - into GSK Biologicals vaccine pipeline.

Based in London, GlaxoSmithKline develops and markets pharmaceutical products.

Based in Vancouver, B.C., ID Biomedical is an integrated biotechnology company that develops vaccines. It markets Fluviral, an injectable vaccine for influenza, and NeisVac-C for Meningococcal Group C disease.

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