Ann: Avexa to manufacture ATC capsules for clinic, page-24

re: Ann: Avexa to manufacture ATC capsules fo... Here you go November 2010 - 24% for $1.5M


ASX Release

Avexa to Buy 24% Stake in Allied Medical

Melbourne, Australia, Thursday 11 November 2010:

Australian biotechnology company Avexa Limited [ASX:AVX] today announced it has agreed to make a strategic investment in Allied Medical Limited, an unlisted public medical device and biotechnology company.

Avexa has agreed to pay Allied Medical $1.5 million in two tranches, which will give it up to a 24% stake in the company.

The first tranche, $750,000, will be paid immediately, and will give Avexa a 14% share of Allied Medical. In addition, Avexa will have the right to appoint one director to the Allied Medical board which currently comprises three directors. The second tranche, which is conditional on Allied Medical proceeding to an ASX listing, will
increase Avexa’s stake to a potential 24%.

Allied Medical’s major shareholder is Andrew Forrest, Executive Director of Perth-based iron ore mining company Fortescue Metals Group Limited. Allied Medical is a medical technologies group with a major interest in Coridon Pty Ltd, a vaccines-focused research and development company started by Professor Ian Frazer. Funds raised from Avexa’s investment in Allied Medical will be used to pursue the Coridon technology.

Avexa Chairman Joe Baini said: “We were drawn to Allied Medical because of its profitable business and growth potential, the quality of its management and board led by director Andrew Forrest, and in particular the core science in Coridon, developed by Professor Frazer and his colleagues in Brisbane.

Coridon’s infectious diseases programs are complementary to, and have synergies with, Avexa’s programs.”

Coridon’s technology could be applied to several infectious diseases such as HSV (genital herpes), HPV (human papillomavirus) or HCV (Hepatitis C virus) or beyond in the treatment of some cancers.

The company is developing dual-action vaccines that offer potential prophylactic and therapeutic benefits. The platform technology has the potential for a new generation of vaccines that both prevent disease onset – like a typical vaccine – and have a therapeutic component that can potentially treat those already infected.

“Coridon’s technology is very exciting,” said Avexa’s Interim CEO & CSO Dr Jonathan Coates.

“The potential to make a new-generation Gardasil-like vaccine that not only vaccinates against a disease but also potentially treats those that have not had the vaccine is hugely significant. Avexa is thrilled to be taking a major stake in such a promising technology.”