remember this? from 9/04
SARASOTA, Fla., Sept. 28 /PRNewswire-FirstCall/ -- DNAPrint(TM) genomics,
Inc. (OTC Bulletin Board: DNAP) today announced that it has agreed to acquire
a 51.77% stake in German pharmaceutical company Biofrontera AG. DNAPrint
simultaneously announced that it has received a commitment from Dutchess
Private Equities Fund, L.P. to purchase up to $35 million in DNAPrint common
stock over the next two years.
DNAPrint has agreed to invest 20 million euro (approximately $25.00
million) over 24 months in Biofrontera Series B preferred shares (68% of B
shares) representing a 51.77% equity interest. Biofrontera will use the
proceeds of the investment to advance its clinical and preclinical drug
pipeline. DNAPrint is only obligated to close the transaction and to begin
paying the purchase price for the Biofrontera shares after it begins making
sales of common stock under its arrangement with Dutchess.
DNAPrint will participate in a clinical pipeline of novel drugs, as well
as an extensive pre-clinical compound portfolio and a broad technology base.
This strategic investment will form the basis of future joint ventures between
the two companies, expanding DNAPrint's presence in Europe and giving
Biofrontera a presence in North America. DNAPrint and Biofrontera have signed
a joint venture framework agreement designed to integrate the companies'
technologies in a mutually beneficial way.
The acquisition will transform DNAPrint from a population genomics company
into a genomics based pharmaceutical company devoted to the development of
21st century "Theranostics" products. "Theranostics" blend genomics-based
tests with drugs as products to target segments of the patient population for
enhanced efficacy and reduced side effects. Management expects the use of
genome-based testing to facilitate the drug development process and accelerate
selected drugs through the clinical trial process. Both DNAPrint and
Biofrontera believe that Theranostics will form the foundation for post-
genome, 21st century medical care.
Biofrontera's lead product candidate, BF-Derm1, is currently in phase II
clinical trials for the treatment of severe, antihistamine-refractory chronic
Urticaria or chronic itching and scratching. The first interim report of a
European adaptive phase II clinical trial recently indicated that the compound
exhibited a 40% improvement above placebo in clinical symptoms. Biofrontera
has also advanced a novel prophylactic migraine treatment to pre-clinical
development, and has a series of other compounds at the pre-clinical stage.
Professor Doctor Hermann Luebbert, CEO of Biofrontera AG, will join the
DNAPrint board of directors.
DNAPrint also has entered into an Investment Agreement with Dutchess
Private Equities Fund. Dutchess will purchase common stock from DNAPrint, at
times and in amounts selected by DNAPrint, up to a total investment of
$35 million over the next two years. The purchase price at which Dutchess
will purchase DNAPrint's stock is based on the trading price of the stock, and
the funding will begin after DNAPrint registers the common stock that it will
issue in the transaction. DNAPrint anticipates that the transaction will
provide it with equity to build the business of the two companies. The
commitment was arranged by Athena Capital Partners.
"We are extremely excited about the alliance between DNAPrint(TM) and
Biofrontera, and we believe we have established a reliable and trustworthy
source of capital for development of both companies," said Richard Gabriel,
CEO and President of DNAPrint. "Our goal for this financing, once it is
completed through the registration process, is to build shareholder value
beyond the inherent investment value that Biofrontera brings to the
relationship. The investment brings Biofrontera's value to over $51 million,
and we fully expect that value to increase for our shareholders if Biofrontera
strikes its milestones. We hope to increase our revenues by combining the
distinct businesses of the two companies and by offering services that address
many of the problems in drug discovery and development. By paying for the
Biofrontera shares over time we have a unique opportunity to achieve our
mutual goals and objectives."
