Merck to acquire Abmaxis for $80 million, GlycoFi for $400 million

By Elaine Rigoli

Tampa, Fla., May 9 - Merck & Co., Inc. said it will acquire 100% of the equity of Abmaxis for $80 million in cash, making Abmaxis a wholly owned Merck subsidiary. The agreement is expected to close in the second quarter of 2006.

Merck also will acquire GlycoFi, Inc., a privately held biotechnology company that develops yeast glycoengineering and optimization of biologic drug molecules. Under the merger agreement, Merck will acquire 100% equity of GlycoFi, which will become a wholly owned Merck subsidiary. The all-cash transaction is valued at about $400 million and is expected to close in the second quarter of 2006, according to a news release.

"Our acquisition of Abmaxis provides Merck with the opportunity to optimize and humanize antibodies, as well as to discover new antibodies," said Peter S. Kim, president of Merck Research Laboratories, in a statement.

"This, coupled with Merck's own industry-leading capabilities in yeast-expression technology and our acquisition of GlycoFi and its complementary technologies, positions us to become a significant player in the important and growing field of biologic drugs."

GlycoFi is based in Lebanon, N.H., and has about 55 employees.

Abmaxis is a biopharmaceutical company located in Santa Clara, Calif.

Merck is a global research-driven pharmaceutical company based in Whitehouse Station, N.J.

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