Biotest AG — Share Issue/Capital Change 2005

Oct 11, 2005

News Details

Corporate | 11 October 2005 09:54

Biotest AG: Capital increase – Up to EUR 30 million for research and …

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Biotest AG: Capital increase – Up to EUR 30 million for research and internationalisation Participation in billion-dollar market to be made possible by the clinical development of biotherapeutic products for rheumatism, psoriasis and multiple myeloma Dreieich, 11 October 2005. Advancing promising research projects, accelerating licensing procedures and expanding distribution to a global level – these are the major aims of the capital increase, the details of which have just now been provided by Biotest AG in an ad-hoc press release. Since the proceeds from the issue will be required over a period of several years, a portion will also be available for the temporary reduction of financial liabilities. If all of the ordinary and preference shares on offer are placed then Biotest will accrue approximately EUR 30 million at the end of October. All of the projects to be financed by the capital increase should make an important contribution to enhancing the value of Biotest in the next few years. A significant part of the funds is expected to be invested in the accelerated clinical development of three monoclonal antibodies that represent a large prospective sales and earnings potential. “Among the indications that we are currently researching, the future clearly belongs to biotherapeutic products,” says Prof. Gregor Schulz, Chairman of the Board of Biotest. “The sooner we can show positive clinical results, the larger our share of the billion-dollar market will be.” Market researchers predict that in six year’s time expenditures of US-$ 8.4 billion will be made just for the treatment of rheumatoid arthritis, a widely spread disease; compared to today, the market will thus approximately triple in size. According to these estimates, biotherapeutic products will account for in excess of 80 % of the future volume. The potential of the monoclonal antibody BT-061, which is currently in the development phase, for the therapy of rheumatoid arthritis is based on its unique immunomodulatory mode of action. As the first tests have shown, BT-061 has a very noticeable effect on improving the symptoms and shows no significant side effects. The clinical studies are scheduled to continue in mid-2006. In addition, clinical tests are to be conducted concerning the possible use of BT-061 in the treatment of psoriasis. According to results so far, the monoclonal antibody BT-062 has demonstrated a new mechanism for the therapy of multiple myeloma, a cancer of the bone marrow for which there is now practically no treatment. In animal experiments, myeloma cells were destroyed with a high effectiveness and speed. The antibody is supposed to undergo first clinical tests in first quarter 2007. In parallel with the clinical development of biotherapeutic products, Biotest will advance the development of new indications for plasma derivatives and will allocate a part of the proceeds to those projects. The focus lies on the further clinical development of Cytotect(R) for the prevention and treatment of cytomegalo-virus (CMV) infections in pregnant women (see press release from Sept. 29, 2005), the development of Pentaglobin(R) in the indication of abdominal sepsis and of Intratect(R) in the indication of chronic pain syndrome (fibromyalgia). Schulz: “With these clinical studies, we will decisively expand the market potential of our plasma derivatives.” At the same time, this is the basis for further intensification of the approval proceedings in the European Union. “We will start clinical studies for our immunglobulins in the next few years in the USA, as well, thereby gaining access for our products to the world’s largest market for plasma derivatives,” according to Schulz. In order to better utilise the potential of the products at a global level, Biotest is also expanding its international distribution network. The pending approval of Intratect(R) in nine EU countries requires expansion of the capacities in marketing and distribution. In the area of diagnostics, Biotest is planning to set up a production and distribution site for hygiene monitoring in the USA. About Biotest Biotest AG in Dreieich is a company that researches and produces pharmaceutical, biotherapeutic and diagnostic products and has specialised in the fields of immunology and haematology. Biotest’s Pharmaceutical Division develops immunoglobulins, clotting factors and albumins based on human blood plasma that are used to treat diseases of the immune system and of the haematopoietic system. In addition, Biotest also conducts research on the clinical development of monoclonal antibodies, including indications of rheumatoid arthritis and blood cancer. The Diagnostics Division specialises in reagents and systems for serology and microbiology, as used for example in the field of blood transfusions. Biotest has approximately 1,100 employees worldwide. The shares of Biotest AG are listed in the Prime Standard. Investor Relations: Hubert Bötsch, Telephone: +49 (0) 6103 801-444, Telefax: +49 (0) 6103 801-880, E-mail: hubert_boetsch@biotest.de Biotest AG, Landsteinerstr. 5, D-63303 Dreieich, http://www.biotest.de End of announcement (c)DGAP 11.10.2005 —————————————————————————— WKN: 522720; ISIN: DE0005227201; Index: Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin- Bremen, Düsseldorf, Hamburg und Stuttgart 110954 Okt 05