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.
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