OncoVista Innovative Therapies, Inc. Sells AdnaGen Subsidiary: Total Sale Price Could Reach $65 Million Over Three Years When Milestones Achieved
SAN ANTONIO, Nov 11, 2010 (BUSINESS WIRE) -- OncoVista Innovative Therapies, Inc., a high-growth global biopharmaceutical company commercializing diagnostic tests for metastatic tumors, as well as developing targeted, personal anticancer therapies by utilizing tumor-associated biomarkers, recently announced that the Company had divested its majority holding of subsidiary AdnaGen AG.
On October 28, 2010, OncoVista Innovative Therapies, Inc. (the "Company") entered into a Stock Purchase Agreement with a buyer whereby the Company sold all of its shares, representing approximately 78% of the total issued and outstanding shares, of its majority-owned German operating subsidiary AdnaGen AG ("AdnaGen").
Under the terms of the Stock Purchase Agreement, the Company and the other AdnaGen shareholders agreed to sell their respective shares, and all AdnaGen related business assets, in consideration of: A $10,000,000 up-front payment $10,000,000 in potential milestone payments contingent upon the achievement of various balance sheet objectives within 24 months Up to $63,000,000 in potential milestone payments contingent upon the achievement of various clinical, regulatory and sales objectives within 36 months (collectively, the "Consideration")
The Company is entitled to receive its pro rata portion of approximately 78% of all Consideration. The SEC filing for the transaction is available here.
"The importance of this transaction should not be underestimated by our shareholders," said Alexander L. Weis, President and CEO of OncoVista. "The proceeds will allow the Company to not only develop the current anticancer drugs in our portfolio more quickly, but to continue to build and enhance our drug portfolio to the benefit of shareholders and more importantly, patients. I would also like to acknowledge HealthPro Bioventures LLC, which was instrumental in working with OncoVista to structure and negotiate this meaningful transaction for our company."
This transaction marks OncoVista's first significant contribution to a world in which cancer patients are given some relief from the current treatment methods, which can be very toxic and too often marginal. The funds OVIT is receiving, potentially as much as $65 million in cash for the Company's share of AdnaGen, will enable it to develop additional non-toxic and more efficacious treatments for cancer.
OncoVista is a high-growth global biotech company developing proprietary, leading-edge early detection and drug technologies to enable safe, targeted personal cancer treatments.
Texas-based OncoVista Innovative Therapies, Inc. /quotes/comstock/11k!ovit (OVIT 0.45, +0.05, +12.50%) is a high-growth theragnostic (the fusion of therapeutic and diagnostic medicine for individual patients) company that identifies specific biomarkers in the bloodstream carried by CTC's to detect metastatic tumors. This allows an oncologist the unique ability to develop personalized, efficacious cancer treatments. OncoVista also produces innovative drug discovery, registration strategies and emerging technologies allowing it to bring to market less toxic and highly effective anti-cancer drugs.
For additional information, please visit OncoVista's corporate website: www.oncovista.com
About HealthPro BioVentures, LLC
HealthPro BioVentures is a life sciences investment bank and strategic advisory firm serving the Biotechnology, Biomedical, Healthcare, and Pharmaceutical sectors. HealthPro BioVentures' network of contacts includes first-tier healthcare venture capital firms, senior level executives at hundreds of public and private biotech companies, specialty pharma companies and major research institutions.
For more information, visit our website at www.healthprobioventures.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as OncoVista or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, such statements in this release that describe the company's business strategy, outlook, objectives, plans, intentions, or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements. These risks and uncertainties include, among other things, product price volatility, product demand, market competition, and risk inherent in the operations of a company. We assume no obligation to update any written or oral forward-looking statement made by us or on our behalf as a result of new information, future events or other factors.