Celsion Completes Acquisition Of EGEN, Inc.

(RTTNews) - Celsion Corp. (CLSN), an oncology drug development company, announced that it has completed the acquisition of substantially all of the assets of EGEN, Inc., a privately-held biopharmaceutical company.

Celsion said the acquisition includes EGEN's Phase Ib DNA-based immunotherapy product candidate EGEN-001 and its therapeutic platform technologies, TheraPlas for delivery of DNA and mRNA, TheraSilence for delivery of RNA, and RAST for Cell Enabled Expression and Secretion of RNA.

Under the terms of the agreement, CLSN Laboratories, Inc., a wholly-owned subsidiary of Celsion, acquired substantially all of the assets and assumed certain specified liabilities of EGEN.

At the closing, Celsion issued $8.5 million worth of common stock, representing about 15.8% of its outstanding shares, paid approximately $3.0 million in cash to EGEN, and holds back $2.1 million worth of common stock until August 2, 2016 for expense adjustment and certain indemnification claims of Celsion. In addition to the upfront payment, a total of $30.4 million in future milestone obligations are payable to EGEN based on the successful completion of certain clinical development and licensing milestones.