RXi Pharmaceuticals Corp. of Worcester is dividing into two companies to pursue both late-stage oncology drug development and the creation of new therapies using RNAi technology, according to a filing with the SEC.
RXi will now be known as Galena Biopharma Inc., a developer of oncology drugs, and will be based in Oregon. A new subsidiary of Galena, with the name RXi Pharmaceuticals Corp., will remain in Worcester and will develop new therapies using RNAi.
Galena will provide RXi with $1.5 million, and RXi will pay the parent company milestone payments of up to $45 million if it achieves certain goals. If the company reaches $500 million in net sales, it will pay Galena $15 million, and at $1 billion in net sales it will pay $30 million.
As part of the agreement, investors have agreed to buy $9.5 million in stock in the new RXi.
