Intercytex Group plc – Acquisition of stem cell company Axordia Limited
22nd December 2008
Intercytex Group plc (LSE: ICX) (“Intercytex”), the regenerative medicine company developing innovative products to restore skin and hair, announces today that it has acquired Axordia Limited (“Axordia”), a privately-held UK company focused on the development of stem cell therapies. Under the terms of the acquisition, Intercytex will issue 7,000,000 new ordinary shares of 1 pence each as consideration for the purchase of the entire issued share capital of Axordia, formerly a Fusion IP portfolio company. Based on Intercytex’ closing share price of 24p on 19th December 2008, this values Axordia at £1.68m.
Following completion of the acquisition, Intercytex will have 93,862,798 Ordinary Shares of 1 pence each in issue. The substantive selling shareholders of Axordia will be subject to a one year lock-up period followed by orderly market trading for a further year.
The acquisition of Axordia gives Intercytex access to a world-leading group focused on the development of embryonic stem cell therapies and significantly broadens Intercytex’ capabilities in regenerative medicine. Axordia, in collaboration with The London Project to Cure Blindness, is developing a novel stem cell therapy to treat age-related macular degeneration, the leading cause of blindness in the elderly. This programme, which also involves the Moorfields Eye Hospital in London, is currently in late-stage preclinical development. In addition, through Axordia, Intercytex gains exclusive rights to commercialise discoveries in the area of stem cell research derived from The Centre for Stem Cell Biology (CSCB) at the University of Sheffield. Axordia was founded in 2001 by Professor Peter Andrews and Professor Harry Moore.
The acquisition is not expected to increase Intercytex’ funding requirements in the short to medium term, as Axordia already benefits from significant external grant and project funding.
Nick Higgins, Intercytex’ CEO, commented: “Recent developments in the area of stem cell research give us increased confidence in its ability to provide a highly effective source of therapies for use in future regenerative medicine products. Axordia’s leading position in stem cell research, combined with our know-how in producing cell-based therapies to pharmaceutical industry standards, provides a strong platform from which to develop future cell-based therapies. The acquisition also provides us with a rich source of future potential pipeline candidates.”