Biopharmaceutical company Favrille, Inc. and MyMedicalRecords.com say their merger is now expected to close in the new year.

The two companies signed a definitive merger agreement in November.

"As we had announced earlier this month, two significant conditions for closing the merger, MMR's stockholder vote and settlement with creditors holding more than 85 percent of the dollar value of all of Favrille's known creditor claims, have been accomplished," said John P. Longenecker, president and CEO of Favrille. "We are now pleased to announce that a third significant condition, completion of the audit of MMR's financial statements for the years ended 2005 through 2007, is well underway, with completion expected in early January. We anticipate closing the transaction in January 2009."

Favrille, a San Diego-based company, develops and commercializes patient-specific immunotherapies for the treatment of cancer and other diseases of the immune system.

MMR, headquartered in Los Angeles, offers a consumer-centric personal health record that is available direct to consumers on a free trial basis through its Web site.

"Health information technology and the management of PHRs are at a revolutionary turning point," said Robert H. Lorsch, CEO and president of MyMedicalRecords.com. "Giving consumers the ability to maintain their medical records securely online leads to higher quality care at reduced costs. MMR's proprietary technologies enable consumers and healthcare professionals to create and access a PHR anywhere in the world. We believe this transaction with Favrille will give MMR broader access to the investment community, which is essential to our sales and marketing strategy and continued expansion of our customer base."

The merged company will be focused on continuing to build and develop the MMR brand as the premier online PHR for consumers and healthcare professionals, officials said.