MELVILLE, N.Y. and CAMBRIDGE, Mass., Nov. 15 /PRNewswire/ -- V.I.
Technologies, Inc. (VITEX) (Nasdaq: VITX) and Pentose Pharmaceuticals, Inc.
announced today the completion on November 12, 1999 of their previously
announced merger. The all stock transaction was finalized today after
shareholders from both companies voted to approve the agreement. The merger
unites two leaders in the emerging field of blood product viral inactivation.
Under terms of the agreement, Pentose shareholders will receive
approximately 6,444,000 shares of VITEX common stock, giving them 34%
ownership of the approximately 18,952,000 outstanding shares of the combined
company. VITEX is accounting for the transaction as a purchase valued at
approximately $41 million, and accordingly expects to write off approximately
$34 million of the transaction cost as in-process R&D in the fourth quarter.
"This merger further strengthens VITEX's position as the leading company
in the field of blood safety and viral inactivation," said John Barr,
President and Chief Executive Officer of VITEX. "The merger with Pentose
gives VITEX the leading virus inactivation technology for red cells -- a
$2 billion market opportunity. The Pentose INACTINE(TM) red cell technology
was approved by the FDA to enter clinical trials on September 3, 1999 with the
first patients to be enrolled in the study this quarter. Together with our
partners from Pentose, we will continue to build on the success of PLAS+(R)SD,
the first virally inactivated transfusion product to win approval in the U.S.,
and expand our existing pipeline. We will also apply revenues from sales of
our currently marketed blood safety products to accelerate development of the
Pentose INACTINE(TM) red cell product."
VITEX is a leading developer and manufacturer of a broad portfolio of
blood products that utilize its patented viral inactivation technologies
designed to ensure safe blood products. The technologies are tailored for all
blood component applications and other blood-derived products, including
plasma, plasma derivatives, red blood cells and platelets. The first of
VITEX's virally-inactivated products, PLAS+(R)SD, is the only FDA approved
method for viral inactivation of plasma. For further information, please
visit the VITEX web site at http://www.vitechnologies.com .
Except for the historical information contained herein, the matters
discussed are forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. These
statements involve risks and uncertainties, such as quarterly fluctuations in
operating results, the timely availability of new products, market acceptance
of the company's products, the impacts of competitive products and pricing,
government regulation of the company's products and other risks and
uncertainties set forth in the company's filings with the Securities and
Exchange Commission. These risks and uncertainties could cause actual results
to differ materially from any forward-looking statements made herein.
To receive additional information on V.I. Technologies, Inc., via fax, at
no charge, dial 1-800-PRO-INFO and enter code VITX.
SOURCE V.I. Technologies, Inc.
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Related links:
http://www.vitechnologies.com
CONTACT:
John Barr, President and CEO of V.I.
Technologies, 516-752-7314, Samuel Ackerman, M.D., President and
CEO of Pentose Pharmaceuticals, Inc., 617-864-4800, Sharon
Karlsberg of Feinstein Kean Healthcare, 617-577-8110, or Alison
Ziegler, Brian Gill, or Deanne Eagle, all of The Financial
Relations Board-BSMG, 212-661-8030, for V.I. Technologies
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