Follow Us On

  • Facebook


Lipoxen in bid to transform Russian state-owned nanotechnology group

Lipoxen Thursday announced an acquisition strategy and an agreement with the Russian state-owned nanotechnology investment company that will utterly transform the bio-pharmaceuticals group, reported Proactive Investors.

Lipoxen is to buy 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. In addition, Lipoxen has brought on board a strategic investor with a very similar name, said the report.

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, Proactive Investors said.

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, indicated the report.

Chief executive Scott Maguire noted that as previously announced, 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 commercialization potential.

Maguire noted his delight over the 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.

© Copyright 2010-16 Invest in Russia Hanko Hackberry Group All rights reserved.