Accentia Biopharmaceuticals to Sell Analytica for $10 Million

Accentia Biopharmaceuticals, Inc. recently announced it has entered into a series of agreements to strengthen its financial position, improve its balance sheet, and support ongoing biotech development plans for its immunotherapy pipeline. The company has entered into an agreement to sell the assets of its non-strategic business unit, Analytica International, Inc., a healthcare economics consulting firm, for up to $10 million to be paid in a combination of fixed and contingent payments by the purchaser, LA-SER Alpha Group Sarl.

Upon the closing of this agreement, Accentia will sell the consulting business conducted by Analytica, which the company does not consider to be critical to its ongoing biotech development activities. Additionally, Accentia has entered into an agreement with its senior secured lender pursuant to which the company will, at closing, prepay $4 million in principal with funds made available by the asset sale and obtain a 1-year extension of all remaining principal and interest payments from its senior secured lender. Both agreements are subject to conditions precedent to closing, expected to occur prior to year-end.

“These transactions are an important part of our ongoing strategy to continue to strengthen the company’s financial position,” explained Accentia’s President and General Counsel, Samuel S. Duffey. “I consider these transactions to be both strategic and timely, as our majority-owned subsidiary, Biovest, prepares for meetings with US and international regulatory agencies to discuss the next steps required for potential approval of our personalized cancer vaccine, BiovaxID.”

Biovest has completed two Phase II clinical trials and a controlled, randomized Phase III clinical trial of BiovaxID, an autologous active immunotherapeutic cancer vaccine being developed as consolidation therapy for the treatment of follicular lymphoma and mantle cell lymphoma in first remission.

“This transaction monetizes a non-core asset in order to eliminate all short-term debt requiring payment in cash, extending all principal and interest payments to our senior secured lender into mid-to-late 2013 so that our financial obligations and resources are better aligned with our planned biotech development milestones,” added Mr. Duffey. “Based on a schedule of expected performance-based milestone payments, we expect to add, non-dilutively, up to $6 million to support our BiovaxID and Revimmune development programs. Importantly, we also secured a prepaid credit for future services from Anaytica to support our planning with regard to pricing and reimbursement strategies.”

Headquartered in Tampa, FL, Accentia Biopharmaceuticals, Inc. 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., 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.