ACCENTIA, INC. TO ACQUIRE 81% INTEREST IN BIOVEST INTERNATIONAL, INC.
New York, April 15, 2003 -PR Newswire -
Use of Proceeds to Accelerate Licensing and Commercialization of the
First Patient-Specific Cancer Vaccine for Non-Hodgkin's Lymphoma, by
Utilizing Each Patient's Tumor and Immune Response to Seek Out and Destroy
Tumor Cells Without Toxicity.
Biovest International, Inc. announced today that it has entered into an Investment Agreement with Accentia, Inc., one of the Hopkins Capital Group portfolio companies. Accentia is a privately held specialty pharmaceutical and services company. Accentia has agreed to purchase an eighty-one percent (81%) equity interest in Biovest for $20 million.
The closing of the transaction will provide working capital and resources
to allow Biovest both to accelerate its ongoing Phase III licensing trial of
its personalized cancer vaccine for non-Hodgkins Lymphoma, being conducted in
cooperation with the National Cancer Institute, and to expand its core
businesses of contract biologic production and manufacturing of hollow fiber
perfusion cell culture systems. In addition, Biovest plans to advance its
efforts to create the first validated facility for the commercial-scale
production of personalized biological therapeutics, integrating Biovest's
patented and proprietary hollow fiber cell culture systems and processes.
Dr. Christopher Kyriakides, Chairman of Biovest, stated, "We are very
excited at the agreement bringing Accentia in as the majority owner of the
company. This investment deal will help enable Biovest to realize its goal of
licensing and commercializing the first patient-specific cancer vaccine for
non-Hodgkin's lymphoma, in an expedited timeframe, while at the same time
providing crucial capital funding needed to allow the company to expand its
capabilities, and increase market share and visibility in the field of
biologic pharmaceutical production. We believe that this combination offers
maximum value to our shareholders and greater flexibility to the company."
Dr. Frank O'Donnell, Chairman of Accentia, commented: "Biovest's core
business of contract manufacturing of biologics complements Accentia's three
wholly owned subsidiaries which offer a range of pharmaservices including
specialty pharmaceutical distribution (AccentRx), global healthcare research
and consulting (Analytica), and specialty pharmaceuticals (TEAMM
Pharmaceuticals). Biovest's distinction as the National Cell Culture Center
with multi-year funding by the National Institutes of Health should be
beneficial to our efforts at Accentia to offer partnering opportunities for
the commercialization of promising biologics. Biovest's patented hollow fiber
bioreactors enable the small-scale, cost-effective production of personalized
medicines. With respect to the patient-specific cancer vaccine, Accentia's
demonstrated expertise in drug development, regulatory affairs, specialty
distribution of complex products, third party reimbursement, formulary
inclusion, and specialty sales and marketing should augment the development
and commercial success of Biovest."
Dr. Stephane Allard, recruited by the Hopkins Capital Group, will become
the new CEO of Biovest. Dr. Allard is the former founding President of
Synthelabo USA and subsequently Vice-President for Medical Affairs at Sanofi-
Synthelabo. His expertise includes oncology drug development, multicenter
clinical trials, biostatistics, product launch, and physician education.
Biovest is a biotechnology company that develops, manufactures and markets
cell culture systems. The company is the holder of a Cooperative Research and
Development Agreement with the National Cancer Institute for the
commercialization of a personalized biologic cancer vaccine for treatment of
non-Hodgkins lymphoma. Pharmaceutical companies and leading academic
institutions worldwide for the past two decades have used its patented hollow
fiber bioreactor technology for production of biologicals. In addition, the
company has the distinction of being designated by the National Institutes of
Health, as the National Cell Culture Center for the past ten years providing
cell culture services to every major research institution throughout the
United States. Through its state of the art technology, Biovest continues to
service the needs of research institutions, biotechnology companies and the
pharmaceutical industry. The Company's expertise in hollow fiber technology
puts it in a unique position to be a leader in the development and production
of personalized cancer vaccines.
Accentia is a specialty pharmaservices company with wholly owned
subsidiaries in specialty pharmacy, pharmaco-economic consulting, and sales
and marketing. Accentia offers a comprehensive suite of specialty
pharmaservices including distribution, reimbursement, compliance monitoring,
phase-IV studies, pricing, formulary inclusion, licensing decision support,
specialty pharmaceutical product acquisitions and commercialization.
Accentia's infrastructure provides services to bio and pharmaceutical
companies, as well as to support the commercialization of its own specialty
pharmaceutical portfolio.
Hopkins Capital Group, LLC is a private equity fund that provides early-
stage, patient capital to support the development of disruptive technologies
in healthcare. The fund's limited partners include high net-worth
individuals, families, and trusts as well as strategic corporate investors.
The fund's timeline for a liquidity event is typically 5-10 years tempered
with expectations of very significant returns on invested capital. HCG has
lead investments in disruptive technologies such as laser refractive surgery
(LASIK), oral drug delivery of injectables, low-nitrosamine tobacco,
chemoprevention of prostate cancer by means of androgen receptor reduction,
phototargeted drug delivery system for prevention and treatment of blinding
retinal diseases, therapeutic vaccines for HIV management, and anti-apoptotics
for prevention of neurodegenerative diseases. HCG's support of Accentia is
intended to provide a valuable commercial partner for its portfolio of
biopharmaceutical companies.
The information in this press release includes certain forward-looking
statements concerning the Company's current expectations regarding future
events including the ongoing and prospective development and commercialization
of the CRADA-based vaccine. Due to the nature of the product development and
the regulatory approval process, the forward-looking statements contained in
this press release are subject to risks and uncertainties, including those
reflected in the Company's filings with the Securities and Exchange
Commission, particularly its Annual Report on Form 10-K for the year ended
September 30, 2002.
Contact Information:
Biovest: Dr. Chris Kyriakides at 800.325.1112
Accentia: Dr. Stephane Allard at 212.686.8640
.
