IBT
MAKES INVESTMENT OF $7.5 MILLION IN NEWLY MERGED MICROCIDE
PHARMACEUTICALS
AND THE ALTHEXIS COMPANY
2
August 2001, London, UK: International Biotechnology Trust Plc. (LSE:
IBT) today announced that it has committed to invest $7.5 million (£5.3
million) in the newly combined operations of Microcide Pharmaceuticals,
Inc. (NASDAQ: MCDE) and the Althexis Company, Inc. On Monday 30th July
Microcide and Althexis announced the signing of a definitive agreement
to merge their businesses in a stock-for-stock exchange; completion
of the merger and private placement remains subject to MCDE shareholder
approval.
The
total financing round raised $60 million (£42 million), and in
addition to IBT, investors included Prospect Venture Partners, New Enterprise
Associates and Schroder Ventures' International Life Sciences Fund II.
Kate
Bingham, General Partner of Schroder Venture Life Sciences, investment
advisors to IBT, who will join the Board of the newly merged company,
commented on the investment:
"We
have been seeking quality investment opportunities for IBT following
our appointment as investment advisors at the end of last year. This
is the largest investment we have made this year for IBT and it will
be one of its top ten. This is also the second time that the Schroder
Venture Life Sciences team has backed Mark Skaletsky who will be chairman
and CEO of the newly merged company." Mark Skaletsky previously
built and sold Geltex to Genzyme.
The
merger of Microcide Pharmaceuticals and the Althexis Company will unite
Microcide's discovery platforms, including its VALID Microbial Genomics
technologies, with Althexis' proprietary target validation system, known
as ACTT. It will also accelerate Microcide's multiple drug development
programs in infectious disease by applying Althexis' Structure-Based
Design (SBDD) technology to lead optimisation.
The
$60 million in private equity funding is being provided in a private
placement of Microcide convertible redeemable preferred stock.
The
preferred stock is convertible into shares of Microcide common stock
at a fixed exchange ratio of $3.00 per share, which represents a 24%
discount from the 20-day average closing price of Microcide as of July
19 2001, the date on which the Company authorized the offering. Preferred
shares converted into common stock will be registered by a Form S-3
filing, and will be subject to certain lockup provisions for up to 9
months after closing. Under the terms of the merger agreement, as unanimously
approved by the Boards of Directors of both Althexis and Microcide,
Microcide will issue approximately 5.3 million shares of common stock
for all outstanding shares of Althexis, and will assume the outstanding
options of Althexis. All but approximately 400,000 of the newly issued
Microcide shares to Althexis shareholders will be subject to certain
restrictions on resale for one year from closing.
- ENDS -
For
further information, please contact:
International
Biotechnology Trust
Andrew Barker
Tel: +44 (0) 20 7658 3206
Fax: +44 (0) 20 7658 2422
Schroder
Ventures Life Sciences
Jodie Van Elst
Tel: +44 (0)20 7421 7070
Fax: +44 (0)20 7421 7077
Email: jodie.vanelst@svlifesciences.com
GCI
Financial
Emily Morris/Katherine Harris
Tel: +44 (0)20 7398 0800
Fax: +44 (0)20 7398 0888
Email: emorris@gcifinancial.com