Cytogen completes CytoRad acquisition

Monoclonal antibody developer Cytogen put the finishing touches on its acquisition of sistercompany CytoRad last month. CytoRad will now be a wholly ownedsubsidiary of Cytogen, the Princeton, NJ, company said.

CytoRad was initially formed as a separate company to pay forR&D at Cytogen, but the two firms began feuding last yearand CytoRad cut off funding (SCAN 6/29/94 and 4/20/94). The disputecontributed to a shortfall of millions of dollars in Cytogen'srevenues last year (SCAN 3/1/95).

The acquisition will resolve the differences between the companiesand will assure Cytogen of a stable source of R&D funds. Cytogenbought CytoRad by trading each share of CytoRad stock for 1.5shares of Cytogen common stock, a warrant expiring in 1997 toacquire one share of Cytogen common stock for $8 a share, anda contingent value right (CVR) to receive additional shares ofCytogen stock if certain conditions are met.