Biotech Outfit Moving to O.C., Sets Joint Project

A biotechnology company said Monday that it will move to Irvine from Wilmington, Del., changing its name and teaming up with a local health care company to develop cell therapies to treat cancer.

The move by VIMRx Pharmaceuticals Inc. will create 120 jobs, although many positions will be offered to current employees who choose to move to Irvine, the company said.

VIMRx also will become known as Nexell Therapeutics Inc., an Irvine subsidiary. VIMRx owns 80% of the subsidiary and is acquiring the remaining 20% from Baxter Healthcare Corp. VIMRx shareholders are scheduled to vote on the change May 25.

Baxter agreed to provide a $20-million line of credit for the company or help in securing larger private financing.

Nexell’s future rides largely on the success of a device that is designed to help cancer patients recover from chemotherapy treatments.

The device filters a patient’s blood, helping restore an immune system ravaged by high doses of chemotherapy, said Dian Griesel, a company spokeswoman. “At the same time, the device purges tumor cells carried in the patient’s bloodstream, lessening the chance of reintroducing cancer cells, a problem with traditional infusions from cells collected from bone marrow,” she said.

The device has received tentative approval from the Food and Drug Administration but is still awaiting final approval from the agency before sales can begin in the United States.

The company has lost more than $161 million in the last three years. But some revenue has been trickling in since 1997 from sales in Europe. The device and its support products generated $5 million in revenue in 1997 and $13.4 million last year.

Baxter will continue to provide contract manufacturing, physical distribution, instrument placement and service to Nexell. Some Baxter sales and marketing personnel will also be offered employment with Nexell, which will assume the responsibilities of marketing, sales and distribution.