HOUSTON, April 26, 2005 (PRIMEZONE) -- Encysive Pharmaceuticals (Nasdaq:ENCY) today announced the signing of a new licensing and related agreements with Revotar Biopharmaceuticals AG, the Company's majority-owned German subsidiary, regarding bimosiamose and certain follow-on compounds. Revotar's other stockholders will contribute additional capital to Revotar to fund its ongoing operations, thereby reducing Encysive's ownership to approximately 14%. Encysive will license the worldwide rights to bimosiamose and receive substantial royalties on future revenues from the commercialization or licensing of this compound and certain follow-on compounds by Revotar. The transaction will become effective upon completion of the contribution of additional capital by Revotar's other stockholders. Revotar's other stockholders may also subsequently purchase Encysive's remaining stock ownership in Revotar for a nominal amount.
Following the completion of the transaction, the Company's consolidated financial statements will no longer include the results of Revotar. Encysive has also agreed to cancel an outstanding loan and accrued interest of approximately $3.7 million owed by Revotar. Encysive does not believe that the licensing and capital restructuring will have a material adverse effect on our results of operations or financial position.
"Following funding by Revotar stockholders, we will license to Revotar all rights to bimosiamose and will participate in any future revenues from the product," said Bruce D. Given, M.D., President and Chief Executive Officer of Encysive Pharmaceuticals. "This strategic transaction will allow Encysive to focus our efforts on Thelin(tm) and the development of our proprietary research products, while allowing Revotar more flexibility in the worldwide development and commercialization of bimosiamose."
About Encysive Pharmaceuticals
Encysive Pharmaceuticals Inc. is a biopharmaceutical company engaged in the discovery, development and commercialization of novel, synthetic, small molecule compounds to address unmet medical needs. Our research and development programs are predominantly focused on the treatment and prevention of interrelated diseases of the vascular endothelium and exploit our expertise in the area of the intravascular inflammatory process, referred to as the inflammatory cascade, and vascular diseases. We have successfully developed one FDA-approved drug, Argatroban, for the treatment of heparin-induced thrombocytopenia that is marketed by GlaxoSmithKline. Our lead drug candidate, Thelin(tm) (sitaxsentan), is an endothelin receptor antagonist that has completed final Phase III clinical trials for the treatment of pulmonary arterial hypertension. In addition, we have earlier stage clinical product candidate in development, TBC3711, a next generation endothelin receptor antagonist. To learn more about Encysive Pharmaceuticals please visit our web site: www.encysive.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are our estimate of the sufficiency of our existing capital resources, our ability to raise additional capital to fund cash requirements for future operations, timelines for initiating new clinical trials, planned announcements of clinical data, the possibility of obtaining regulatory approval, our ability to manufacture and sell any products, potential drug candidates, their potential therapeutic effect, market acceptance or our ability to earn a profit from sales or licenses of any drug candidate, our ability to discover new drugs in the future, and our ability to establish future collaborative arrangements. In particular, careful consideration should be given to cautionary statements made in the various reports Encysive, including as Texas Biotechnology Corporation, has filed with the Securities and Exchange Commission. Encysive undertakes no duty to update or revise these forward-looking statements.
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