Merck Inc., acquires Viralytics and with it Cavatak (CVA 21),investigational oncolytic immunotherapy.

Merck Inc., and Viralytics Limited announced that the companies have signed a definitive agreement under which it is proposed that Merck, through a subsidiary, will acquire Viralytics, an Australian publicly traded company focused on oncolytic immunotherapy treatments for a range of cancers by way of a scheme of arrangement (Scheme) for AUD 1.75 cash per Viralytics share. The proposed acquisition values the total issued shares in Viralytics at approximately AUD 502 million (USD 394 million). The cash consideration of AUD 1.75 per share represents a premium of 160% to the one month volume weighted average price (VWAP) of Viralytics shares.On completion of the transaction, Viralytics will become a wholly-owned subsidiary of Merck, and Merck will gain full rights to Cavatak (CVA21), Viralytics�s investigational oncolytic immunotherapy. Cavatak is based on Viralytics�s proprietary formulation of an oncolytic virus (Coxsackievirus Type A21) that has been shown to preferentially infect and kill cancer cells. Cavatak is currently being evaluated in multiple Phase 1 and Phase II clinical trials, both as an intratumoral and intravenous agent, including in combination with Merck�s Keytruda (pembrolizumab), an anti-PD-1 therapy. Under an agreement between Viralytics and a subsidiary of Merck, announced in November 2015, a study is investigating the use of the Cavatak and Keytruda combination in melanoma, prostate, lung and bladder cancers.