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Intercytex is a Manchester-based regenerative medicine developer

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8:32 am, December 7, 2009
Shareholders may get nothing out of Intercytex wind down

Shareholders in Intercytex Group Plc (AIM: ICX) may end up with nothing from the company's sale of its assets.

The company announced plans today to delist from the Alternative Investment Market and change its name to Regenerative Medicine Assets Ltd.

Shares in Manchester-based Intercytex collapsed earlier this year after it announced that work was being stopped on its most promising drug, the Cyzact ulcer treatment. Since then it has made redundant all of its 76 staff in Manchester, Cambridge and Boston, USA, leaving only three executive directors on the payroll.

In July, the company announced it had failed to find a buyer for the entire business but was in talks to sell off assets. Wholly owned subsidiary, Axordia, which is based in Sheffield, was sold to Pfizer Ltd for $750,000 last month.

Today's statement added: “The directors have also explored the possibility of raising further funds to continue development of Intercytex' remaining development programmes. However, against the background of the current financial market, this has not been feasible. At the same time the company has continued to conserve its cash resources by implementing measures to reduce overhead expenditure and headcount levels.”

Proceeds from the Axordia deal were insufficient to support development of Intercytex' remaining products and directors said the “best course of action is to sell all of the remaining assets of the group and return excess funds (if any) to shareholders.”

The company said it was close to selling hair regeneration assets including ICX-TRC, certain wound healing assets including ICX-SKN and Cyzact, and Vavelta another drug under development and the disposals would be completed within the next three months.

The statement added: “Even if all of the disposals are completed and all anticipated sale proceeds received, the group will still have significant liabilities to be settled. The board therefore anticipates only a relatively small return to Shareholders (if any) compared to the market capitalisation at the time the company's shares were suspended.”

At that time, on September 2, 2009, the company was valued at about £3.5m.

If approved at a meeting on December 23, the cancellation will be effective from January 8, when the board will be cut down to four non-executive directors, with the resignation of Alan Suggett and Paul Kemp.

Chief executive Nick Higgins and chief financial officer Max Herrmann will remain as non-executive directors for up to six months, but will only receive reimbursement of any out-of-pocket expenses and no salary.

Herrmann will also provide consultancy services during the wind down and will remain the company secretary.

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