OncoVista Sells AdnaGen Subsidiary: Total Sale Price Could Reach $65 Million Over Three Years When Milestones Achieved
OncoVista Innovative Therapies, Inc. (OTCBB:OVIT.ob - News), a high-growth global biopharmaceutical company commercializing diagnostic tests for metastatic tumors, as well as developing targeted, personal anticancer therapies by utilizing tumor-associated biomarkers, recently announced that the Company had divested its majority holding of subsidiary AdnaGen AG.
On October 28, 2010, OncoVista Innovative Therapies, Inc. (the “Company”) entered into a Stock Purchase Agreement with a buyer whereby the Company sold all of its shares, representing approximately 78% of the total issued and outstanding shares, of its majority-owned German operating subsidiary AdnaGen AG (“AdnaGen”).
Under the terms of the Stock Purchase Agreement, the Company and the other AdnaGen shareholders agreed to sell their respective shares, and all AdnaGen related business assets, in consideration of:
A $10,000,000 up-front payment
$10,000,000 in potential milestone payments contingent upon the achievement of various balance sheet objectives within 24 months
Up to $63,000,000 in potential milestone payments contingent upon the achievement of various clinical, regulatory and sales objectives within 36 months (collectively, the “Consideration”)
The Company is entitled to receive its pro rata portion of approximately 78% of all Consideration. The SEC filing for the transaction is available here:
“The importance of this transaction should not be underestimated by our shareholders,” said Alexander L. Weis, President and CEO of OncoVista. “The proceeds will allow the Company to not only develop the current anticancer drugs in our portfolio more quickly, but to continue to build and enhance our drug portfolio to the benefit of shareholders and more importantly, patients. I would also like to acknowledge HealthPro Bioventures LLC, which was instrumental in working with OncoVista to structure and negotiate this meaningful transaction for our company."
This transaction marks OncoVista's first significant contribution to a world in which cancer patients are given some relief from the current treatment methods, which can be very toxic and too often marginal. The funds OVIT is receiving, potentially as much as $65 million in cash for the Company’s share of AdnaGen, will enable it to develop additional non-toxic and more efficacious treatments for cancer.
OncoVista is a high-growth global biotech company developing proprietary, leading-edge early detection and drug technologies to enable safe, targeted personal cancer treatments.
About OncoVista:
Texas-based OncoVista Innovative Therapies, Inc. (OTCBB:OVIT.ob - News) is a high-growth theragnostic (the fusion of therapeutic and diagnostic medicine for individual patients) company that identifies specific biomarkers in the bloodstream carried by CTC’s to detect metastatic tumors. This allows an oncologist the unique ability to develop personalized, efficacious cancer treatments. OncoVista also produces innovative drug discovery, registration strategies and emerging technologies allowing it to bring to market less toxic and highly effective anti-cancer drugs.
For additional information, please visit OncoVista’s corporate website: www.oncovista.com