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Lipoxen PLC (XEN)

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Friday 29 May, 2009

Lipoxen PLC

£2.9m Fundraising

RNS Number : 9720S
Lipoxen PLC
29 May 2009

For immediate release

29 May 2009

Lipoxen plc

('Lipoxen' or the 'Company')


~ Led by Baxter International Inc ~

Lipoxen plc (AIM: LPX), a bio-pharmaceutical company specialising in the development of high-value differentiated biologicals, vaccines and siRNA delivery, announces today that it has raised approximately £2.9 million before expenses through a non pre-emptive issue of shares (the 'Fundraising') consisting of a placing to institutional investors, a subscription by Baxter International Inc. ('Baxter') and a subscription by senior management and certain directors of a combined total of 34,200,000 new ordinary shares of 0.5 pence each (the 'Placing Shares'). Noble & Company are acting as lead broker and Singer Capital Markets are acting as joint broker to the Fundraising. 

Highlights of the Fundraising:

  • Fundraising led by Baxter International Inc., the global healthcare company that has an existing license agreement with Lipoxen worth up to a total of US$75 million to develop improved, longer-acting forms of blood-clotting factors - see separate announcement issued today

  • Transaction supported by new institutional investors and certain of Lipoxen's Directors and senior management

  • Proceeds of the Fundraising will be used to fund:
       -   Pre-clinical R&D and feasibility studies for proprietary and prospective collaborative candidate development 
           directed at new licence initiatives;
       -   LPX contribution to EPO product candidate to EMEA/FDA Phase IIa clinical trials;
       -   IP protection;
       -   Initiation of new proprietary protein and vaccine programs to enhance long-term shareholder value creation, 
       -   Working capital.

The Placing Shares, which represent approximately 28.5 per cent of the Company's issued share capital prior to the Fundraising and circa 22.2 per cent of the enlarged issued share capital, have been placed by Noble & Company and Singer Capital Markets at a placing price of 8.5 pence per share. The placing price represents a discount of 39 per cent. to the closing middle market price on the London Stock Exchange on 27 May 2009

Under the terms of the Fundraising, Baxter as well as Lipoxen's two largest shareholders, the Serum Institute of India Ltd and FDS Pharma LLP, have entered into orderly marketing agreements in respect of all their respective shareholdings in the Company. The orderly marketing agreements provide that any sale of their shares in Lipoxen must be done through Noble & Company for a period of 12 months from the date of admission of the Placing Shares

Commenting on the Placing, M. Scott Maguire, CEO of Lipoxen, said: 'We are very pleased with the support shown in this Fundraising from both our partner, Baxter, and leading UK and European institutional investorsWe believe that, together with the recent positive announcements surrounding our influenza and malaria initiatives, this funding round demonstrates that Lipoxen has a valuable pipeline, a low risk partnered business strategy and is well positioned for future growth and generation of shareholder value.'

Following the Fundraising, Lipoxen will have a total of 154,058,085 ordinary shares with voting rights in issue. Therefore the total number of voting rights in the Company is 154,058,085. This number can be used by shareholders as the denominator for the calculations which will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FSA's Disclosure and Transparency Rules. Admission of these Placing Shares is expected to become effective on 29 May 2009. The Placing Shares, when issued and fully paid, will rank pari passu in all respects with the existing ordinary shares of the Company.

- 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 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:

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

  • ImuXen - for creating new vaccines and improving existing vaccines

  • 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:

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