OctoPlus provides update on Biolex Therapeutics  

In an update on partner Biolex Therapeutics ("Biolex") which has filed a voluntary petition for liquidation, OctoPlus anticipated a sale of the company's assets, with the proceeds used to satisfy liabilities which may include debts to creditors and investors.

Pursuant to the Product Rights Acquisition Agreement signed with Biolex in 2008, OctoPlus received an equity stake in Biolex of 1.83%, which was included in the financial statements at 31 December 2011 for an amount of € 1.3 million. With Biolex' voluntary petition for liquidation under Chapter 7 in the US Bankruptcy Court for the Middle District of North Carolina, (July 3rd 2012), OctoPlus stated that an impairment loss would be recognised in the financial results of the first half year of 2012.

One of the key assets of Biolex is Locteron, which is a combination between OctoPlus' PolyActive® technology and Biolex' interferon alpha for the treatment of chronic hepatitis C which had completed Phase IIb clinical studies, reportedly with superior clinical data versus current treatment. It was further developed during 2011 in anticipation of Phase III clinical trials, with development work completed and invoiced to Biolex resulting in an accounts receivable position of € 1.9 million, of which € 0.8 million relates to manufacturing cancellation fees, incurred in 2012.
OctoPlus believed that the rights to Locteron would be sold in its entirety to maximise on proceeds generated while also ensuring the continued development of its lead product Locteron,.

Jan Egberts, CEO of OctoPlus comments: "Although we are obviously disappointed that the business operations of Biolex have ceased to exist, we remain confident about the long term clinical and commercial validity of Locteron and that the product will ultimately be commercialised."