Nabi, Biota Consider Former Inhibitex Executive Plumb as New CEO

   By Kristin Jones 
 

Nabi Biopharmaceuticals (NABI) has entered into "advanced discussions" with flu-drug developer Biota Holdings Ltd. (BTA.AU) to name Russell H. Plumb as chief executive of the combined company after a planned merger.

Nabi shares rose 8% in after-hours trading to $1.75. Through Thursday's close, the stock was down 14% so far this year.

Mr. Plumb was president, chief executive and chief financial officer of hepatitis C drug developer Inhibitex Inc. from December 2006 through February 2012, when it was acquired by Bristol-Myers Squibb Co. (BMY) for about $2.5 billion.

Mr. Plumb's appointment as chief executive of the merged entity, to be known as Biota Pharmaceuticals Inc., hasn't been finalized. It depends in part on shareholder approval of the merger of Nabi, a developer of nicotine-addiction treatments, and Biota.

Biota agreed in April to merge with Nabi in an effort to gain access to the U.S. capital markets. Existing Biota shareholders would hold about 74% of the new company and Nabi shareholders would have the remainder.

Nabi has faced opposition to the merger from Mangrove Partners Fund L.P., which owns a roughly 3.4% stake in Nabi. Mangrove has urged shareholders to vote against the proposed merger, saying it undervalues Nabi's assets.

Nabi has said the deal offers a better value than the liquidation option preferred by Mangrove.

Write to Kristin Jones at [e-mail]

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