Bio-pharma Xenetic (LON:XEN) today denied reports that 12% shareholder the Serum Institute of India (SIL) is looking to dispose of its stake.
A joint statement from the companies said: “Following a report published on Friday 20th January 2012 in The Economic Times (India), the boards of both Serum and Xenetic wish to clarify that there is absolutely no truth in the statements made in the article.”
The report quoted SIL executive director Adar C Poonawalla, the son of the founder chairman and managing director Cyrus Poonawalla, but today he said: “At no time since 2007 has Serum Institute of India contemplated selling its interest in Xenetic Biosciences and this steadfastly remains the case."
“The commitment to Xenetic will continue on a long-term basis, as Serum has already spent millions buying shares in Xenetic, set up specific facilities for manufacture of Polysialyic acid (PSA) and expended US$3.5 million on the clinical trials for PSA EPO. Recently, Serum has subscribed to shares at 11p to reinforce its long term commitment to Xenetic. We are also partnered with Xenetic on supplying PSA to Baxter for Factor VIII.“
Scott Maguire, chief executive of Xenetic, said: "The commitment from Serum on these important programs was never in doubt in my mind as I have the highest regard and respect for the level of scientific and clinical development effort that Serum has made over the years and will continue to do so."
"It is, of course, distressing when the press gets it so badly wrong, and I am therefore delighted that Adar Poonawalla has been both quick and forceful in making this fulsome statement of support for Xenetic.”
Xenetic, which recently changed its name from Lipoxen, added that Serum was the sole current supplier of PSA, the polymer at the core of its PolyXen platform technology in both the ErepoXen and Baxter programmes.
Shares in Xenetic opened little changed at 8.75p.