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Corixa buys Coulter
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October 16, 2000: 11:29 a.m. ET
Biotech acquisition, valued at $838M in stock, seen expanding cancer drug line
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NEW YORK (CNNfn) - Biotechnology company Corixa Corp. agreed to acquire Coulter Pharmaceutical Inc. Monday for $838 million in stock, expanding the company's drug treatments for cancer and autoimmune diseases.
Seattle-based Corixa (CRXA: Research, Estimates) will swap 1.003 shares for each Coulter share, valuing Coulter shares at $44.32 each. The purchase price represents a 43 percent premium to Coulter's closing price of $30.94 on Friday.
Including $100 million in options, the total value of the deal comes to more than $900 million, Coulter's CEO Michael Bigham said.
Coulter will own 45 percent of the combined company that will break even in 2003 and become profitable in 2004, he said.
"Both Corixa and Coulter have a shared vision that a comprehensive immunotherapy company is the kind of company we want to create," Bigham said.
 The boards of both companies have approved the purchase that is expected to close in December.
South San Francisco, Calif.-based Coulter (CRXA: Research, Estimates) develops drugs and therapies to treat cancer and autoimmune diseases. Coulter is seeking commercial approval from the Food and Drug Administration for its most advanced product, Bexxar, which it is developing with SmithKline Beecham.
Bexxar is designed to treat relapsed or low-grade B-cell non-Hodgkin's lymphoma, a form of cancer that affects the blood and lymphatic tissues. If approved, the treatment could be the first approved radioimmunotherapy to go on the market.
In addition to Bexxar, products for the combined company will include Melacine, Corixa's cancer vaccine, and PVAC, Corixa's treatment for psoriasis.
Corixa's chief executive Steven Gillis will remain as CEO of the combined firms, which will retain the Corixa name, while Bigham will serve as vice chairman.
DB Alex. Brown represented Coulter while Corixa used Pacific Growth Equities.
Coulter gained $2 to $32.94 in Monday morning trading while Corixa plummeted $8.78 to $35.81. 
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Coulter Pharmaceutical
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