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Lipoxen PLC (XEN)

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Friday 29 May, 2009

Lipoxen PLC

$1m Investment from Baxter

RNS Number : 9716S
Lipoxen PLC
29 May 2009
 



For immediate release  

29 May 2009


Lipoxen plc

('Lipoxen' or 'the Company')


BAXTER INTERNATIONAL INC MAKES US$1 MILLION EQUITY INVESTMENT IN LIPOXEN


Lipoxen plc (AIM: LPX), a bio-pharmaceutical company specialising in the development of high-value differentiated biologicals, vaccines and siRNA delivery, is pleased to announce today that it has received a direct investment of US$1 million from Baxter International Inc. ('Baxter'), the global healthcare company, that has an existing license agreement with Lipoxen.


In August 2005, Lipoxen signed an exclusive worldwide development and licence agreement with a subsidiary of Baxter International Inc. to develop improved, longer-acting forms of blood-clotting factors. The agreement is worth up to a total of US$75 million in cash milestones plus royalties. The equity investment by Baxter comes in the form of a credit against the next contingent milestone payment. 


Baxter will subscribe for 7,325,470 new ordinary shares of 0.5 pence each at a price of 8.5 pence per share. Following completion it is expected that Baxter will hold approximately 4.8 per cent. of the issued share capital in the Company.  Application has been made for the shares to be admitted to trading on the London Stock Exchange's AIM market for listed securities and admission is expected on 29 May 2009.


This US$1 million equity investment is part of a £2.9 million fundraising - see separate announcement issued today.


Commenting on the announcement, M. Scott Maguire, CEO of Lipoxen, said: 'Baxter is a leading global healthcare company and is committed to improving the lives of patients who are suffering from debilitating diseases such as haemophilia. Baxter has been a commercial partner since August 2005, making Baxter one of Lipoxen's longest standing partners. Baxter's investment in Lipoxen highlights the success of our partnership to date and further endorses our innovative technologies in the fields of biologic drugs and vaccines.'


Also commenting on this announcement, David Holliday, Vice President of Global Marketing Operations for the BioScience business at Baxter International Inc., said: 'We are pleased to continue our important partnership with Lipoxen through this investment as we advance our development program.'


- Ends -


For further information please contact:


Lipoxen plc

+44 (0)20 7389 5015 

M. Scott Maguire, Chief Executive Officer




Singer Capital Markets (nominated adviser)

+44 (0)20 3205 7500

Jeff Keating / Claes Spång 




Noble & Company

+44 (0) 20 7763 2200 

John Llewellyn-Lloyd / Sam Reynolds  




Buchanan Communications

+44 (0)20 7466 5000

Mary-Jane Elliott, Lisa Baderoon, Rebecca Skye Dietrich, Catherine Breen



Notes for Editors


About Lipoxen

Lipoxen plc is a biopharmaceutical company focused on the development of new and improved biologic drugs and vaccines. Lipoxen has three proprietary patented technology platforms:


1) PolyXen - for extending the efficacy and half life of biologic drugs

2) ImuXen - for creating new vaccines and improving existing vaccines

3) SiRNAblate - for the delivery of siRNA


Lipoxen's technology is designed to improve the efficacy, safety, stability, biological half-life and immunologic characteristics of its products.  


Lipoxen has multiple drug and vaccine programmes in development. Two products are in clinical development, SuliXen, a long acting insulin and ErepoXen, a long-acting erythropoietin (EPO). Lipoxen's preclinical pipeline includes Factor XIII and vaccines against HIV, influenza and malaria.  


The Company has a low-risk business model and out-licenses its proprietary technologies to biopharmaceutical companies that have strong manufacturing and marketing capabilities. Lipoxen currently has commercial agreements with some of the world's leading biotechnology and pharmaceutical companies including Baxter, Schering-Plough, Sanofi-Aventis, the Serum Institute of India Limited, Genentech, Amgen and Genzyme.  


Lipoxen, which was founded in 1997, now trades on the AIM Market of the London Stock Exchange under the ticker symbol LPX. More information can be found at the Company's website: www.lipoxen.com.


This announcement includes 'forward-looking statements' which include all statements other than statements of historical facts, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services), and any statements preceded by, followed by or that include forward-looking terminology such as the words 'targets', 'believes', 'estimates', 'expects', 'aims', 'intends', 'will', 'can', 'may', 'anticipates', 'would', 'should', 'could' or similar expressions or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Company's control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future. Among the important factors that could cause the Company's actual results, performance or achievements to differ materially from those in forward-looking statements include those relating to The Company's funding requirements, regulatory approvals, clinical trials, reliance on third parties, intellectual property, key personnel and other factors. These forward-looking statements speak only as at the date of this announcement. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statements are based. As a result of these factors, readers are cautioned not to rely on any forward-looking statement.




This information is provided by RNS
The company news service from the London Stock Exchange
 
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