Xechem's Subsidiary Receives 2nd Phase Loan Approval from NEXIM Bank
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Last Update: 4:03 PM ET Mar 29, 2007
NEW BRUNSWICK, N.J., Mar 29, 2007 (BUSINESS WIRE) -- Xechem International, Inc. (XKEM : XKEM
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XKEM, , ) announced today that its subsidiary Xechem Pharmaceuticals Nigeria Ltd. received final approval from the Nigerian Export-Import ("NEXIM") Bank on March 28, 2007 for an additional loan of N350 Million Naira (approximately $2.6 million US Dollars).
Dr. Ramesh C. Pandey, the Chairman and CEO, stated, "The proceeds of this loan, which we expect to receive in the coming days, will allow us to place the ongoing construction of our new full scale manufacturing facility on the highest priority level. We are going to work very closely with our contractors and our partners at the Sheda Science and Technology Complex (SHESTCO) property to facilitate as rapid a completion of the construction as possible."
"We are very grateful to all who have worked so hard to make this happen," Dr. Pandey continued, "and recognize the level of commitment the NEXIM Bank has made to help assure the people of Nigeria and ultimately the world that this important anti-sickling drug, discovered by a Nigerian research team at the National Institute for Research and Development (NIPRD), will be made available to all who need it."
About NICOSAN(TM)
NICOSAN(TM) is an anti-sickling drug originally developed as NIPRISAN by the Nigerian scientists at the National Institute for Pharmaceutical Research and Development (NIPRD). In clinical studies conducted under NIPRD's auspices, the drug has shown to substantially reduce the degree of sickling of the red blood cells of those afflicted with the disease. While not a cure, the clinical trials have confirmed that the large majority of patients taking NICOSAN(TM) no longer experience sickle cell "crises" while on the medication, and even among those whose crises are not eliminated, the number and severity of the crises are substantially reduced. Through quality control/quality assurance (QC/QA) Xechem has standardized and verified the antisickling activity of the product, which is now called as NICOSAN(TM).
After the approval by the regulatory agency of Nigeria, National Agency for Food and Drug Administration and Control (NAFDAC), NICOSAN(TM) is being marketed in Nigeria since July 6th, 2007 on a limited basis. NICOSAN(TM) has Orphan Drug Designation in the US and EU countries.
About Xechem
Xechem International is a development stage biopharmaceutical company working on Sickle Cell Disease (SCD), antidiabetic, antimalarial, antibacterial, antifungal, anticancer and antiviral (including AIDS) products from natural sources, including microbial and marine organisms. Its 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) (to be marketed as HEMOXIN(TM) in the US and Europe). With the Nigerian regulatory approval now in hand, Xechem is now working on the commercialization of the drug in Nigeria and 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 (VCU).
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. Such risks include the risk that: (i) Xechem Nigeria will be unable to consummate the closing of its currently proposed bank financings; (ii) there could be delays and/or cost overruns in connection with the build out of Xechem Nigeria's pilot plant facility to a full scale commercial production facility; (iii) the Company and/or Xechem Nigeria could suffer significant dilution from the raising of additional capital until such point in time as they achieve cash flow break even status; (iv) doing business in Nigeria is subject to all of the risks of operation in a foreign country and associated political and regulatory risks; and (v) operations of the Company could be disrupted due to the chronic limited availability of funds to meet ongoing obligations.
SOURCE: Xechem International, Inc.
Xechem International, Inc. Stephen Burg, 707-425-8855 Director Copyright Business Wire 2007
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