DNAprint Genomics (DNAG)

[mingwan0]

http://www.resprotect.de/presse/artikel/041004_biocentury100404bc.pdf

Merchant bank Dutchess Private Equity ventured into biotech last week, setting up a financing facility with penny stock DNAPrint genomics. Portfolio manager Doug Leighton told Ebb & Flow that the pharmacogenetics company "is probably the least expensive stock we’ve ever been in. Our general market cap band is $50-$100 million." Based on Friday’s close of $0.018, DNAP is valued at $12 million.

Under the facility, DNAP can put up to $35 million of stock to Dutchess over the next two years.

As it turns out, a lot of Dutchess’ money will make its way overseas: In conjunction with the financing facility, DNAP announced plans to take a majority stake in Germany’s Biofrontera. DNAP plans to invest $25 million in Biofrontera over two years, which would give it a 51.8% stake.

The goal, said DNAP, is to use its pharmacogenetics capabilities to stage patients for trials of Biofrontera’s BF-Derm1, which is in Phase II testing to treat chronic itching and scratching.

Leighton noted that Dutchess did not invest in DNAP in order to get a piece of Biofrontera. "We’d been talking to DNAP since January and were interested in them first. Biofrontera came along and liked our structure."

Biofrontera Pharmaceuticals Holding AG, Leverkusen, Germany
DNAPrint Genomics Inc. (DNAP), Sarasota, Fla.
Business: Neurology, Dermatology, Pharmacogenetics

DNAP will invest €20 million ($24.5 million) over the next two years for a 51.4% stake in Biofrontera in the form of series B shares. The companies also entered a JV to integrate Biofrontera’s drug discovery and development projects with DNAP’s population genomics based diagnostic tests for improved selection of patient groups.

Biofrontera’s lead program, BF-Derm1, a histidine decarboxylase inhibitor, is in Phase II studies to treat urticaria. Trial results are expected in the first quarter of 2005. DNAP’s investment is secured by Dutchess Private Equities Fund, which will invest up to $35 million in DNAP shares over the next two years.