Deals

Accelr8’s 190% Mystery Bounce

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Antibiotic analysis developer Accelr8 Technology Corp.’s (AXK) stock nearly doubled since the announcement of a $14 million PIPE on April 23, when the stock traded around $1. Investor Abeja Ventures, also known as Crabtree Partners, agreed to buy 14 million shares of common stock at $1.03, but the shares closed at $2.75 on June 26, the acquisition date indicated in regulatory filings. The company plans to use the PIPE proceeds to finish development of its BACcel antibiotic resistance testing system for bacteria and fungal pathogens. On June 27, the company announced the departure of longtime CEO and board director Thomas Geimer. Former Ventana Medical Systems and Roche Tissue Diagnostics executive Lawrence Mehren has assumed Geimer’s roles. Mehren, along with Jack Schuler and John Patience, controls Abeja, which in turn controls 71.6% of Accelr8’s common stock.

Legal

OrbiMed Says Special Deal Structure Hijacked

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Healthcare investor OrbiMed is accusing competitor BB Biotech AG of improperly replicating the structure of a hybrid financing first proposed by OrbiMed to medication maker Intercell AG (INRLY). BB Biotech allegedly induced Intercell to end negotiations with OrbiMed and “enter into an identical transaction with BB Biotech, OrbiMed’s direct competitor, on the basis of unique terms that defendants misappropriated directly from OrbiMed,” according to a civil suit. The suit, naming Switzerland-based BB Biotech and its chairman of the board Thomas Szucs, was filed on May 24 in the New York State Supreme Court. A spokesperson for BB Biotech declined to comment as did a spokesperson for Intercell, which is not named in the action. Szucs is also the supervisory board chairman of Intercell, the suit says.