The Hindu Business Line : Serum Institute acquires 14 pc stake in Lipoxen

Serum Institute of India Ltd (SIIL), manufacturers of measles and DTP vaccines in the global market, has picked up a 14 per cent stake in Lipoxen PLC, a biopharmaceutical company specialising in the development of differentiated biologicals, vaccines and oncology drugs. Lipoxen has raised £2.6 million in new funds from SIIL through a subscription agreement and associated warrant agreement.

Dr Cyrus Poonawala, Chairman and Managing Director, SIIL, said that the funds raised through subscription would allow Lipoxen to drive clinical development of potential protein drugs and vaccines into clinical trials and appoint a leading biologic contract research organisation. He added that Lipoxen would also be able to recruit additional laboratory staff to capitalise on its revenue-generating collaborations. He said pursuant to the subscription agreement, Lipoxen has agreed to issue to SIIL 10 lakh ordinary shares at a subscription price of 26 pence per share (subscription shares). Lipoxen has also entered into a warrant agreement with SIIL through which SIIL can subscribe for up to 2.7 million ordinary shares in the company for two years from August 3, 2006, at a subscription price of 35 pence per share. SIIL has also been granted the right to appoint a non-executive director to the board of the company. In an official communication, Mr M. Scott Maguire, Chief Executive Officer, Lipoxen, said that products currently under development include improved formulations of important biologicals such as EPO, G-CSF, insulin and interferon-alpha based on Lipoxen's proprietary PolyXen technology. This technology would improve the stability, biological half-life and immunologic characteristics of therapeutic proteins naturally.

More Stories on : Mergers & Acquisitions | Pharmaceuticals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
KSB Pumps launches new pumpset

Cos borrowed $ 3b overseas in April, May

Godrej Furniture unifies business

Essar Group launches Cyprus-registered arm

Britannia plans to raise stake in Daily Breads to 50 pc

Serum Institute acquires 14 pc stake in Lipoxen

Nippon Paint plans new manufacturing units by 2008

ITC's gesture to flood victims

Enam into insurance broking

TVS group to expand MyTVS chain

Wipro registers 40 pc growth in medical equipment sales