Reliance Life Sciences to acquire UK's GeneMedix

22 December 2006

Reliance Life Sciences would make the investment over the next five years in order to take the company''s bio-similars for launch in the EU and US, GeneMedix said in a filing with the London Stock Exchange.

The investment would be in two tranches, of approximately £14.6 million and £17.5 million, on the basis of anticipated funding requirements of the business, the statement said.

As per the deal, RLS would initially acquire 74-per cent in GeneMedix by investing £14.6 million, through subscription of shares, while the second would be through the issue of five-year warrants of additional ordinary shares.

The initial investment would allow the company to restructure GeneMedix''s balance sheet by paying off long-term debt. GeneMedix plans to delist post acquisition by RLS.

The acquisition, which is subject to the approval of shareholders, would clear uncertainties about funding the company''s programmes and its financial position, Julian Attfield, chief executive of GeneMedix, said.

"Not only will the significant investment allow GeneMedix to continue to develop its existing portfolio of products at an accelerated pace but will also allow us to bring new biopharmaceutical products under development," he added.