Homepage  |   E-mail this article  |   Print

---

Intercytex, Manchester-based regenerative medicine developer

---

Advertisement

7:40 am, November 23, 2009
Only three execs left as Intercytex announces sell-off

Intercytex Group Plc (AIM: ICX), the the Manchester-based regenerative medicine developer, today said it had sold some assets from its stem cell business to Pfizer for $750,000 in cash.

The assets belong to Axordia Ltd, a company which Intercytex bought last December for £1.68m. At the time, Sheffield-based Axordia was working on a treatment for age-related macular degeneration and Intercytex said the purchase gave it access to a “world leading” group focused on the development of stem cell therapies.

Axordia made a loss of £200,000 in the year to July 31, 2008.

Intercytex, whose shares were suspended in September, is in the process of selling off its assets after it was forced to suspend development of one of its main products, the Cyzact ulcer treatment.

It said in a statement today: “Detailed discussions regarding the sale of other business assets are continuing and the company anticipates making further announcements in due course.

"The proceeds from the sale of Axordia's assets will be used to support ongoing operational costs and working capital requirements of the company as these discussions continue.”

Intercytex revealed that it had closed its offices in Cambridge, UK, and Woburn, near Boston, USA, and cut all staff other than three executive directors Nick Higgins, chief executive; Paul Kemp, chief scientific officer and Max Herrmann, chief financial officer.

It added: “All three directors have been put on notice and it is anticipated that their employment with the company will end once the divestment process is complete, which is expected to be by the end of the year.”

All but £75,000 of the proceeds from the Axordia deal are being paid on completion and Intercytex said this would provide cash for the company to continue into next year.

Comments?manchesternews@crain.com