Canada-based pharmaceutical company Paladin Labs, has acquired all the outstanding shares of biotech company ViRexx Medical.

The company has paid $1.25 million to existing ViRexx creditors.

In addition, the company stated in a release that former ViRexx shareholders could get a payment of up to $2.50 million, if certain conditions are met before December 31, 2009.

ViRexx Medical Corp., a development-stage biotechnology company, develops therapeutic products for the treatment of chronic viral infections and cancer. The firm develops therapeutic products based on three technology platforms, which include Chimigen, targeted-autothrombogenic cancer therapy (T-ACT), and antibody-based immunotherapy (AIT).

Paladin Labs’ intention is to develop the company's Chimigen Vaccine platform, which includes vaccines for hepatitis B and C.

The company plans to invest $2 million to 2.5 million on R&D for the Chimigen program and partnering next year.