www.lipoxen.co.uk
Xenetic Biosciences (formally Lipoxen) is a leading biopharmaceutical company operating from the UK that develops high-value, differentiated pharmaceutical products in the fields of protein drugs, vaccines and anti-cancer drugs.
The company has developed a range of proprietary patented technologies that are being used to create a new generation of drug and vaccine products with improved performance. Xenetic Biosciences 's technologies include: PolyXen® - Protein drug delivery, ImuXen® - DNA, protein and polysaccharide vaccines and VesicALL® - Anti-cancer drugs using liposomal entrapment.
Lipoxen's acquisition and Russian partnership utterly transforms drug developer
Lipoxen (LON:LPX) has this morning unveiled an acquisition and an agreement with the Russian state-owned nanotechnology investment company that will utterly transform the bio-pharmaceuticals group.
It is buying German firm SymbioTec, which is developing a platform technology around highly alkaline proteins called histones to treat a broad spectrum of cancers. The all-paper deal values SymbioTec at £8.8 million.
Just to complicate matters Lipoxen has brought on board a strategic investor with a very similar name.
SynBio is acquiring 110.8 million shares at 11 pence each – a near 19 per cent premium to last night’s closing price.
It will also be granted just over 11 million warrants with an exercise price of 33 pence.
The fundraiser gives Lipoxen an immediate cash injection of £12.19 million, which will be augmented by an open offer of stock to existing shareholders that is expected to bring in a further £1.95 million.
The injection of cash will give Lipoxen financial wherewithal to fund its projects for the next two years.
The SynBio investment is part of a wider collaboration with the group, majority owned by the multi-billion dollar Russian state-owned nanotechnology investment company, the Russian Corporation of Nanotechnologies.
Lipoxen said it will license into Russia six drug candidates to “efficiently exploit its technologies and establish human proof of concept” ahead of wholesale clinical trials.
At the same time the group has “consolidated and refined” its agreement with the Serum Institute of India.
This will include the surrender back of the development rights of up to 14 drug candidates, and uplift of its economic interests in ErepoXen, which is being developed as a long-acting treatment for anaemia.
SIL is also subscribing for 2.5 million new shares and has been granted warrants over a further 7.5 million at an average price of 20 pence.
Given the radical shake-up, Lipoxen has decided to change its name to Xenetic Biosciences.
Chief executive Scott Maguire said: "As previously communicated, management has actively explored a number of opportunities that, with the overall objective of reducing its dependence on third parties, would allow the company to control its destiny through proprietary drug development, the acquisition of complementary natural platform technologies, and the acquisition of new product candidates with near-term commercialisation potential.
“We are therefore delighted to announce these proposals to shareholders and believe this series of transformational transactions will afford the company independence as a specialty drug developer with high-value orphan drug product candidates which have shorter term market launch potential."
Speaking to Proactive Investors this morning, Maguire was very keen to highlight the importance being attached to the Lipoxen-Rusnano agreement at very high levels in Russia and on-going efforts in the country to create a world-leading biotech industry.
“There is a hell of a lot of publicity over this venture in Russia right now and it is an indication of how serious they are about developing their biotech industry,” says Maguire.
He points out that at 2pm today, Moscow time, a big press conference is being held to highlight the Lipoxen-Rusnano-SynBio venture. As well as Rusnano and SynBio management, high ranking Kremlin officials and representatives from the Moscow Stock Exchange will be in attendance.
Maguire says the time, effort and money being expended by the Russian government and private companies in supporting high tech industries including biotechnology, augurs well for the Lipoxen-Rusnano effort.
He highlights in particular the setting up of the Skolkovo innovation hub near Moscow as a case in point. The hub is championed by Viktor Vekselberg, a co-owner of Russia's Renova, and Craig Barrett, ex-chairman of Intel, and aims to support the development of high tech, innovative companies focused on sectors such as biotechnology, space, energy and IT.
