TAMPA, Fla.--(BUSINESS WIRE)--Accentia Biopharmaceuticals, Inc. (OTCQB: ABPI) today announced that is has completed its planned transaction to sell the assets and business of its non-strategic business unit, Analytica International, Inc., a healthcare economics consulting firm, for up to $10 million (USD) being paid in a combination of fixed and contingent payments by the purchaser, LA-SER Alpha Group Sarl. Accentia divested its health care economics consulting business conducted by Analytica, which Accentia does not consider to be critical to its ongoing biotech development activities. Based on a separate agreement with the Company’s senior secured lender, Accentia prepaid $4 million in principal with funds from the Analytica asset sale and obtained a one-year extension of all remaining principal and interest payments from the lender.
According to Accentia’s President and General Counsel, Samuel S. Duffey, “By monetizing a non-core asset to eliminate all short term debt payable in cash, and structuring a mutually beneficial agreement with our senior secured lender to extend all principal and interest payments into mid-to-late 2013, we have strengthened Accentia’s financial position, improved its balance sheet and secured access to potentially non-dilutive funding to support development plans for our immunotherapy pipeline.”
Under the terms of the Analytica sale, including a schedule of expected performance-based milestone payments, Accentia anticipates up to an additional $6 million which will be used to advance its Revimmune™ development program for the treatment of autoimmune disease, as well as to potentially provide support for its majority-owned subsidiary, Biovest International, Inc. (OTCQB: BVTI), which is advancing its BiovaxID® personalized cancer vaccine for the treatment of non-Hodgkin’s lymphoma. With the sale of Analytica’s assets and business, Accentia also secured a pre-paid credit for future services from Analytica to support pricing and reimbursement strategies.
In other news, Accentia and Biovest each announced that the Companies filed their respective Annual Reports on Form 10-K with the SEC, reporting the results of the Companies operations for the fiscal year ended September 30, 2011.
About Accentia Biopharmaceuticals, Inc.
Headquartered in Tampa, Florida, Accentia Biopharmaceuticals, Inc. (OTCQB: ABPI) is committed to advancing the autoimmune disease therapy, Revimmune™, as a comprehensive system of care and drug regimen designed for the treatment of autoimmune diseases. Revimmune therapy includes an ultra-high-dose regimen of Cytoxan® (cyclophosphamide), exclusively supplied via a strategic agreement with Baxter Healthcare Corporation. Clinical trials for Revimmune are being planned for the treatment of multiple autoimmune indications.
Accentia holds a majority-ownership stake in Biovest International, Inc. (OTCQB: BVTI), an emerging leader in the field of active personalized immunotherapies. In collaboration with the National Cancer Institute, Biovest has developed a patient-specific cancer vaccine, BiovaxID®, with three clinical trials completed, including a Phase III study for the treatment of follicular non-Hodgkin’s lymphoma.
For further information, please visit: http://www.Accentia.net
Special Note: The current Accentia website is under construction and the new website will be launching soon.
Forward-Looking Statements:
Statements in this release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements about Revimmune™, BiovaxID® and any other statements relating to products, product candidates, product development programs, the FDA or clinical study process including the commencement, process, or completion of clinical trials or the regulatory process. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, expectations and intentions, and other statements identified by words such as "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results of Accentia to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to the progress, timing, cost, and results of clinical trials and product development programs; difficulties or delays in obtaining regulatory approval for product candidates; competition from other pharmaceutical or biotechnology companies; and the additional risks discussed in filings with the Securities and Exchange Commission. All forward-looking statements are qualified in their entirety by this cautionary statement, and Accentia undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof. The product names used in this statement are for identification purposes only. All trademarks and registered trademarks are the property of their respective owners.