Lipoxen & Baxter Agreement Update

 

TIDMLPX 
 
RNS Number : 7835S 
Lipoxen PLC 
16 September 2010 
 

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| For Immediate Release           |               16 September 2010 | 
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                        LIPOXEN & BAXTER AGREEMENT UPDATE 
 
                - Lipoxen Receives US$2m License Fee Payment - 
         - Baxter Issued Warrants to Subscribe for up to US$2m Equity - 
  - Baxter Selects Lead Polymer Polysialic Acid (PSA)-Factor VIII Candidate - 
           - Baxter Granted Right to Appoint NED to Lipoxen's Board - 
 
Lipoxen plc (AIM: LPX), ('Lipoxen' or 'the Company') a bio-pharmaceutical 
company specialising in the development of high-value differentiated 
biologicals, vaccines and siRNA delivery, announces an important transaction 
with Baxter International Inc., ("Baxter") a global healthcare company and 
Lipoxen's third largest shareholder. 
 
Background: 
 
In August 2005, Lipoxen and Baxter signed a License Agreement with a potential 
value of up to US$75 million in cash milestones plus royalties. 
 
The current Transaction has been concluded pursuant to both: 
 
(a)  The signing of a License Amendment Agreement, and, 
(b)  Baxter's selection of a lead PSA-FVIII candidate.  PSA-FVIII is a 
longer-acting form of a Factor VIII molecule using Lipoxen's PolyXen  drug 
delivery technology. 
 
Pursuant to the foregoing: 
 
(a)  Lipoxen will receive a US$2 million licence fee payment within 20 days of 
today's date, being an amount otherwise due at a later date in respect of an 
Investigational New Drug (IND) filing as per the original License Agreement of 
2005, such current payment being offset against that IND fee, and, 
(b)  Lipoxen issuing to Baxter warrant rights entitling Baxter, at their sole 
option to subscribe for up to US$2m of new equity in Lipoxen from the date 
authority to issue sufficient number of shares is available to 30 June 2015 at 
an Exercise Price being the Volume Weighted Average Price (VWAP) of Lipoxen's 
shares for the 5 trading days up to close of business on September 15th, 2010, 
being an Exercise Price of 9.02 pence. 
 
With the selection of the lead candidate now completed and its progression into 
pre-clinical development, Lipoxen will continue to work with Baxter to achieve 
the remaining US$71 million in additional potential cash milestones payments due 
plus royalties. 
 
Baxter has also has been granted the right to nominate a Non-Executive Director 
to Lipoxen's Board with such nomination to be made no later than 31 December 
2010. 
 
Commenting on the announcement, Scott Maguire, CEO said: 
 
"The continued support from Baxter of Lipoxen is key to our efforts to 
commercialise our platform technologies. We are very pleased with the ongoing 
positive preclinical results for the lead PSA-Factor VIII molecule which we are 
working on with Baxter." 
 
"As announced in June this year, through the investigational studies in process, 
Baxter is exploring other potential factor replacement therapies in the 
treatment of haemophilia A and B and for patients with inhibitors. We are 
delighted that our relationship with one of the world's leading 
biopharmaceutical companies continues to evolve and we look forward to 
leveraging the expertise and success of our Factor VIII for the new candidates 
under investigation.  The success of the Baxter partnership and its expansion to 
further molecules validates the Lipoxen business model where positive 
pre-clinical and clinical results lead to further partnering opportunities." 
 
 
                                    - Ends - 
 
For further information, please contact: 
Enquiries 
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| Lipoxen plc                              |     [phone] | 
|                                          |               5015 | 
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| M. Scott Maguire, Chief Executive        |                    | 
| Officer                                  |                    | 
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|                                          |                    | 
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| Singer Capital Markets (nominated        |     [phone] | 
| adviser)                                 |               7500 | 
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| Jeff Keating / Claes Spång               |                    | 
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|                                          |                    | 
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| Buchanan Communications                  |     [phone] | 
|                                          |               5000 | 
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| Lisa Baderoon, Jessica Fontaine          |                    | 
| Lisa Baderoon                            | Mobile:    +44     | 
|                                          | 7721 413496        | 
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|                                          |                    | 
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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: 
 
1) PolyXen - for extending the efficacy and half life of biologic drugs 
2) ImuXen - for creating new vaccines and improving existing vaccines 
3) 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 
vaccines against HIV, influenza and malaria and an exclusive license deal with 
Baxter Healthcare for blood coagulation drugs. 
 
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, the Serum Institute of India Limited, Genentech, and 
Genzyme. Furthermore, Baxter, the Company's third largest shareholder, and 
management led the GBP2.9 million fundraising that the Company announced in May 
2009. This fundraising was followed up by a GBP1.2 million placing in April 2010 
which was led by the Company's management team. 
 
Lipoxen, which was founded in 1997, 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: www.lipoxen.com. 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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