Death of Telik Breathes New Life Into its Stock

Gregory Bergman |

Shares of Telik, Inc. (TELK)   were up over 30 percent today on news that the company had entered into a definitive merger agreement with MabVax Therapeutics. Investors had never fully fully resuscitated Telik,Inc.  after the company's botched attempt to hide premature deaths of ovarian cancer patients treated with Telcyta, its experimental drug back in 2007.  In January, 2014 the company announced its failure to satisfy the equity requirements needed to remain on the Nasdaq. Telik's final disappearance from the world of biotech seemed imminent.



Sometimes,  a company needs to die for its stock to live. The merger announcement with MabVax Therapeutics was music to the ears of Telik shareholders. Upon closing of the all stock transaction, MabVax and Telik will be combined into a publicly-traded company focused on the development of proprietary immunotherapy-based products to diagnose and treat cancer.

MabVax Therapeutics is currently conducting Phase II clinical trials for the treatment of two cancers; Sarcoma and Ovarian Cancer.

Telik will be re-named MabVax Therapeutics Holdings, Inc. and will operate with  J. David Hansen, President and CEO of MabVax, at the helm.  A group of Telik investors have agreed  to invest $2.5 million in Telik in support of the merger.

After soaring to nearly $2.00 per share,  TLEK closed at $1.49, up nearly 20 percent on the day.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
CELX Celexpress Inc 0.00 0.00 0.00 0

Comments

Emerging Growth

Kiwa Bio-Tech Products Group Corp

Kiwa Bio-Tech Products Group Corp develops, manufactures, distributes and markets, cost-effective and environmentally safe bio-technological products for agriculture in China.

Private Markets

WayBetter

The spark hit Jamie when he saw co-workers competing to lose weight. Instead of pizzas and subs, they were eating salads and jogging along the river. Some were sneakily leaving…

8tracks

Our mission is to be the best place for people who care about music to create and discover thoughtfully curated playlists. In essence, 8tracks is a platform for online mixtapes.