Xenogenics boardmember/Dr. Brassfield/8/21/03/post from RB board
By: brasfild
21 Aug 2003, 06:34 PM EDT
Msg. 5678 of 17264
(This msg. is a reply to 5665 by stockstudentca.)
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Stockstudent, your posting is so misinformed that I feel obligated to respond. As a board member of EXTI subsidiary, Xenogenics, I will limit myself strictly to public information published by ourselves or our new partners.
Xenotech is actually one of the largest, privately held CRO's (contract research organizations) in the US with a reputation for excellence in drug metabolism and safety testing. They are already involved in producing and using hepatocyte testing kits involving human and other species' hepatocytes and what they need from us are our well characterized, metabolically active, immmortalized human hepatocytes. Their hepatocyte kits are based on primary cells, which are very hard to come by, and we offer them immortalized, easy to grow with media in vats, cell lines.
Our agreement with them gains us manufacturing capacity without having to build our own factory, an instant sales and marketing staff which already has contacts with the major pharmaceutical companies, administrative support and does so instantly without the huge time and money outlay required of EXTI if we were to do all this ourselves. Our royalties arrangement guarantees at least $18 million during the seven years but with no upper limit plus giving us a quick $1.5 million in very welcome cash. And since Xenotech provides manufacturing, sales, and most admin, this royalty based revenue stream flows, with very little cost, to our bottom line. This leaves Multicell free to do what it does best, research aimed at new revenue producing cell lines and, what we may be most excited about, therapeutic proteins.
Xenotech is an affiliate of Nosan Group, a Japanese company formed in the 1930's, and it is they that have the financial muscle to make this royalties guarantee. They are Japan's largest animal feed manufacturer, they are a public company 20% owned by Mitsubishi, and had gross revenue of about $1 billion last year. With revenues slowly declining during the last 5 years, Nosan boldly adopted a strategy for the 21st century of becoming a world leader in biotech and have recently formed affilliations with three US biotechs, among them Xenotech, plus biotechs in Denmark, Scotland, and Germany.
I am extremely pleased with the opportunity for rapid growth with much lessened financial risk that this agreement brings to EXTI. My advice to you, Stockstudent, is to start doing some homework!
Scott Brassfield, MD
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