XKEM news....more about........
Over the past few months, since the 1:3000 RS, this stock has been extremely volatile.
Twice it bounced from about .15 to about .35 and is now near the low price area again.
News, such as this, could move it again...IMO
NEW BRUNSWICK, N.J., Dec 30, 2003 (BUSINESS WIRE) --
Xechem International, Inc. (OTCBB: XKEM) today announced that it has completed the acquisition of Ceptor Inc., a privately held bio-technology company, significantly increasing Xechem's drug pipeline. Xechem will issue $6,000,000 of Convertible Preferred Stock to Ceptor's shareholders, and assume approximately $300,000 of debt. Under the terms of the agreement, no shares will be converted until at least 12 months. 'Ceptor provides Xechem a neuromuscular platform technology that will produce both orphan drug products for the Company to develop under its business model as well as large-market products appropriate for partnering with major companies. This proprietary technology includes the carrier molecules carnitine and taurine to target any passenger molecules to skeletal muscle cells and nerve cells, respectively. This will provide potential products for muscular dystrophy, multiple sclerosis, ALS, epilepsy, ototoxicity, nerve damage, and muscle wasting,'said William Pursley, Vice-Chairman and President of Xechem International.
Ceptor, is led by Dr. Alfred Stracher, Distinguished Professor and Chairman of Biochemistry at Downstate Medical Center in Brooklyn, New York. Dr. Stracher commented, 'We are excited about the merger and are looking forward to a higher profile for the Ceptor technology.'Ceptor will operate as a wholly-owned subsidiary of Xechem.
Ceptor's lead product, MYODUR, includes the carnitine carrier and the peptide, leupeptin, a known calpain inhibitor. Calpain is the primary protease that degrades skeletal muscle. Because calpain is up regulated in muscular dystrophy, the Company believes the inhibiting effect of leupeptin along with the targeting effect of carnitine makes MYODUR an ideal candidate for this orphan disease. Xechem plans to file an IND for MYODUR to initiate a phase Ib clinical trial in muscular dystrophy in 2004. The Company estimates that muscular dystrophy represents a $1B+ market opportunity.
For a larger indication such as epilepsy, NEURODUR, another product candidate, has also been shown effective in animal models. NEURODUR combines the nerve cell targeting molecule, taurine, with valproic acid. Valproic acid, alone, represents the primary therapy for epilepsy today but has proven to be very difficult to regulate as a therapeutic. Too little provides no benefit and too much can cause serious adverse effects. The Company believes NEURODUR will offer a strong advantage because of the preciseness and efficiency of its nerve cell targeting. Epilepsy is a multibillion dollar market opportunity and represents an excellent out-licensing candidate.
Finally, because carnitine, leupeptin, taurine and valproic acid, individually, are all well known, safe and established molecules to the FDA, the Company believes they represent a low-risk development pathway as their combinations have shown no denaturing of the individual components.
Dr. Ramesh Pandey, Chairman &CEO of Xechem International stated, 'The Ceptor technology is unique and will provide a platform for treating many different diseases. We are gratified that the merger has been completed.'
Xechem International, Inc. is a fully integrated biopharmaceutical company focusing on proprietary technologies for orphan diseases. Its mission is to increase the quality and quantity of life of the people who suffer from these diseases.
