OctoPlus provides update on Biolex Therapeutics
OctoPlus N.V. ("OctoPlus" or the "Company") (Euronext: OCTO) provides an update on its partner Biolex Therapeutics ("Biolex").
On 3 July 2012, Biolex filed a voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the Middle District of North Carolina.
We anticipate that a trustee will be appointed to sell the company's assets. The proceeds of this transaction will be used to satisfy liabilities, which may include debts to creditors and investors.
OctoPlus' shares in Biolex
Pursuant to the Product Rights Acquisition Agreement we signed with Biolex in 2008, OctoPlus received an equity stake in Biolex of 1.83%, which has been included in the financial statements at 31 December 2011 for an amount of EUR 1.3 million. With Biolex' voluntary petition for liquidation under Chapter 7 there is objective evidence of impairment of this asset and an impairment loss will be recognized in the financial results of the first half year of 2012.
One of the key assets of Biolex is Locteron, which is a combination between OctoPlus' PolyActiveR technology and Biolex' interferon alpha. Therefore we believe that in order to maximize the proceeds generated from the liquidation sale and ensure the continued development of Locteron, the trustee will sell the rights to Locteron in its entirety.
In the course of 2011 Biolex requested us to further develop Locteron in anticipation of Phase III clinical trials. We have completed and invoiced this development work to Biolex resulting in an accounts receivable position of EUR 1.9 million, of which EUR 0.8 million relates to manufacturing cancellation fees, incurred in 2012.
Jan Egberts, CEO of OctoPlus comments: "Although we are obviously disappointed that the business operations of Biolex have ceased to exist, we remain confident about the long term clinical and commercial validity of Locteron and that the product will ultimately be commercialized."
For further information, please contact:
Rianne Roukema, Corporate Communications: telephone number +31 (71) 524 1071, or send an e-mail to Investor Relations at IR@octoplus.nl.
OctoPlus is a specialty pharmaceutical company focused on the development and manufacture of improved injectable pharmaceuticals based on our proprietary drug delivery technologies that exhibit fewer side effects, improved patient convenience and a better efficacy/safety balance than existing therapies. OctoPlus also focuses on the development of long-acting, controlled release versions of known protein therapeutics, peptides and small molecules, including specialty generics.
The clinically most advanced product incorporating our technology is LocteronR , a controlled release formulation of interferon alpha for the treatment of chronic hepatitis C. OctoPlus licensed Locteron exclusively to Biolex in October 2008. Locteron is being manufactured for Biolex by OctoPlus and has completed Phase IIb clinical studies with superior clinical data versus current treatment.
In addition, OctoPlus is a leading European provider of advanced drug formulation and clinical scale manufacturing services to the pharmaceutical and biotechnology industries, with a focus on difficult-to-formulate active pharmaceutical ingredients.
OctoPlus is listed on NYSE Euronext in Amsterdam under the symbol OCTO. For more information about OctoPlus, please visit our website www.octoplus.nl.
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Source: OctoPlus N.V. via Thomson Reuters ONE