november AG significantly expands its research capacity

21-Aug-2001

biotechnology company acquires nearly 25 percent of ACGT ProGenomics AG, Halle (Saale) / direct synergies to own activities / share deal

Erlangen, 14 August 2001. november AG significantly expands its research and development capacities. Within the scope of a share deal, the biotechnology company, listed at the Neuer Markt, takes over a stake of 24.95 percent in ACGT ProGenomics AG, Halle (Saale)/Germany. Especially in the field of Molecular Therapy, november AG gains through this participation access to important property rights and developments that add to its own portfolio and are synergistic to own approaches. This enables november AG to significantly expand its research capacities and its development potential without affecting liquidity. At the same time, november AG receives the option to further strengthen the partnership, for example by future capital measures.

ACGT ProGenomics AG was founded in 2000 by its present CEO, Dr. Gerald Böhm. With recombinant protein biotechnology as the common technological basis, the research and development company operates in the fields of diagnostics, therapeutics, and bio-information technology. In the field of therapeutics, ACGT ProGenomics develops applications and systems for drug delivery. Within its diagnostics unit, the company develops a novel lab-based method for early-stage diagnosis of diseases such as Alzheimer as well as so-called TSE-diseases which include BSE. TSE stands for "transmissible spongiform encephalopathies" and comprises all infectious sponge-like diseases of the brain.

For november AG, the special attractiveness of this participation is due to the direct synergies between ACGT ProGenomics' activities and november AG's own research and development work. In the field of Molecular Therapy, for example, november AG has developed the so-called biocapsid technology, which allows to biologically encapsulate drugs in order to transport them safely into the cell, where they become effective. By means of the present transaction, both companies intensify their successful strategic co-operation in this field. november is already exclusive licensee for ACGT ProGenomics' "TmHU", a protein that can be used in biotechnological research for transporting bio-molecules into cells. On the basis of their complementary technologies, november and ACGT ProGenomics plan to jointly develop and improve additional therapeutical drug delivery systems.

Both companies' management judge the co-operation particularly favorable. Dirk T. Honold, CFO of november AG says: "Due to the chosen construction and in the interest of our share holders the co-operation with ACGT ProGenomics AG can be significantly expanded without making use of november AG's liquidity." Dr. Gerald Böhm, CEO of ACGT ProGenomics AG says: "The substantial synergies that can be observed between the two companies' research strategies will allow a joint and highly efficient development and marketing of products."

As part of its major Molecular Diagnosis unit, november together with ACGT ProGenomics will develop a method for the detection of BSE in living animals within the scope of a national research platform. This project will be supported by grants from the German Federal Ministry for Education and Resarch (BMBF).

The participation will be fulfilled as a pure share deal on november's as well as on ACGT ProGenomics' side via increase of capital stock without affecting the liquidity of the Erlangen-based company. ACGT ProGenomics increases its subscribed capital to an extent that enables november AG to hold a 24.95 percent stake. In return, ACGT ProGenomics receives 240,000 shares, which have been newly issued using authorized capital. The subscribed capital of november AG hence rises to Euro 6.81 million.

https://www.chemeurope.com/en/news/4403/november-ag-significantly-expands-its-research-capacity.html