Xechem International Inc. (fka XKEM)

[smartmoney77]

http://biz.yahoo.com/bw/061018/20061018005758.html?.v=1

Press Release Source: Xechem International, Inc.


U.S. Ex-Im Bank has Approved Comprehensive Guarantee to Support $9.38 Million Loan from UPS Capital to Xechem Pharmaceuticals Nigeria
Wednesday October 18, 12:46 pm ET


NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Xechem International, Inc. (OTC BB: XKEM - News) announced today that the United States Export Import (Ex-Im) Bank, the official credit export agency of the United States, has approved a Comprehensive Credit Guarantee to support a $9.38 million loan from UPS Capital Business Credit to Xechem Pharmaceuticals Nigeria, Ltd. (Xechem Nigeria). Two Nigerian banks, Access Bank Plc. and Diamond Bank, Plc., are to provide the required Nigerian local bank guarantees in favor of Ex-Im Bank.
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Funds Earmarked for Establishment of State-of-the-Art Pharmaceutical Facility in Sheda Science Village, Sheda, FCT, Abuja, Nigeria

The funds to be provided by UPS Capital under the Ex-Im guaranteed loan will be used to purchase the U.S. manufactured plant equipment and machinery needed by Xechem Nigeria to establish a state-of-the-art pharmaceutical facility. The first phase of construction of the new facility began in July of this year. The total cost of the project is estimated at $12.45 million, of which $9.38 million will come from the U.S. loan. The expanded pharmaceutical facility, once completed, will enable Xechem Nigeria to produce commercial scale quantities of NICOSAN(TM), Xechem's breakthrough medicine for the prophylactic management of Sickle Cell Disease (SCD).

Xechem Nigeria received regulatory approval for the manufacture, sales and marketing of NICOSAN(TM) from Nigeria's National Agency for Food and Drug Administration and Control (NAFDAC) on July 3rd, 2006, and officially launched the drug just a few days later at a ceremony presided over by His Excellency, General Olusegun Obasanjo, the President of Nigeria. The drug is currently being produced by Xechem Nigeria in limited quantities at its pilot-scale facility in Abuja.

Dr. Ramesh Pandey, Chairman and CEO of the Xechem Companies said, "We are very pleased that this most anticipated guarantee from the U.S. Ex-Im Bank has now been approved and that we can now accelerate pursuit of our dream of building what we believe will be one of the finest state-of-the-art cGMP standard pharmaceutical facilities in Nigeria. Even more importantly, the Ex-Im guaranteed loan will help insure that we can produce commercial scale quantities of NICOSAN(TM) to meet the needs of the millions of people afflicted with this terrible disease. We are very grateful to Ex-Im Bank, UPS Business Credit, Access Bank and Diamond Bank, as well as our financial consultants, Financialbridge, Inc., for their support for this important project and for helping us make the dream a reality."

About Sickle Cell Disease

Sickle Cell Disease (SCD) is an inherited blood disorder caused by an abnormality in the hemoglobin molecule. Patients with the disease often produce stiff, abnormally shaped red blood cells that often do not flow freely through the blood vessels. This can create clogs in the vessels, which in turn can cut off the flow of normal hemoglobin and oxygen to parts of the body, and can cause severe painful attacks or "crises", damage to various organs and shortened life spans. People with SCD often suffer unpredictable painful crises several times a year lasting from a few hours to a week or more. In the US, there are approximately 80,000 patients with SCD. In Nigeria, that number is believed to be approximately 4 million, with an estimated 10 - 12 million sufferers throughout the African continent. Worldwide, at least 16 million individuals are believed to be afflicted with SCD.

About Xechem

Xechem International is a development stage biopharmaceutical company working on Sickle Cell Disease (SCD), antimalarials, and antiviral (including AIDS), anticancer, antifungal and antibacterial products from natural sources, including microbial and marine organisms. Its primary focus is on the development of phyto-pharmaceuticals (Natural Herbal Drugs) and other proprietary technologies, including those used in the treatment of orphan diseases. Xechem's mission is to bring relief to the millions of people who suffer from these diseases. Its recent focus and resources have been directed primarily toward the development and launch of NICOSAN(TM) (named HEMOXIN(TM) in the US and Europe) for the prophylactic management of Sickle Cell Disease (SCD). With the recent Nigerian regulatory approval of NICOSAN(TM), Xechem is now scaling-up the commercialization of the drug in Nigeria and making preparations for the pursuit of US FDA and European regulatory approval. In addition to NICOSAN(TM), Xechem is also working on another sickle cell compound, 5-HMF, which it has licensed from Virginia Commonwealth University.

Forward Looking Statements

This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 as amended, and section 21E of the Securities and Exchange Act of 1934, as amended, which are intended to be covered by safe harbors created hereby. Such forward looking statements involve known and unknown risks and uncertainties.



Contact:
Xechem International, Inc
Stephen Burg, Director, 707-425-8855

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Source: Xechem International, Inc.