OXIS International Acquires Therox Pharmaceuticals

OXIS International Inc., a leader in antioxidant therapeutic technologies, announced its intention to acquire Philadelphia-based Therox Pharmaceuticals Inc., which is funded by S.R. One, Limited, and Brantley Venture Partners II L.P. This acquisition comes as the third in less than a year for OXIS, and is expected to bring complementary technologies, seven patents, and corporate and university partnerships to the company. The deal is valued at approximately $3,940,000, with Therox shareholders potentially earning an additional $2,000,000 based on the successful commercialization of the technologies.

Key Takeaways:

• OXIS International Inc. has signed a letter of intent to acquire Therox Pharmaceuticals Inc., a Philadelphia-based company funded by S.R. One, Limited, and Brantley Venture Partners II L.P.
• The acquisition is the third in less than a year for OXIS and is valued at approximately $3,940,000, with Therox shareholders potentially earning an additional $2,000,000.
• Therox brings complementary technologies, seven patents, and corporate and university partnerships to OXIS, positioning the company for future growth and development.
• The acquisition is subject to the approval of both OXIS and Therox's board of directors and the entering into of final definitive agreements.
• OXIS plans to employ a strategy of partnering with pharmaceutical companies for the clinical development of its therapeutics.

Dr. Anna D. Barker, President and CEO of OXIS, stated that the acquisition of Therox technology portfolio strategically positions OXIS to achieve its goals and provides two key advantages for the future:

• The additional complementary therapeutics technologies expand OXIS' opportunities to develop novel, high-value therapeutics to treat free radical-associated diseases.
• The Therox technologies balance OXIS' pipeline through the addition of mid-term product opportunities, complementing OXIS' short- and long-term potential therapeutics.

Therox's therapeutics technologies were originally based on research by Dr. Donald Witiak of the University of Wisconsin School of Pharmacy and Dr. William Weglicki of The George Washington University School of Medicine. Since its founding in 1993, Therox has developed a portfolio of seven patents, synthesized more than 100 new antioxidant compounds and free radical scavengers, and developed "virtual" research programs through outsourcing to university investigators.

Therox has focused its efforts on the discovery and development of unique, powerful new drugs that combine antioxidant activity with other key therapeutic effects. These new compounds, combined with OXIS' portfolio of novel small molecular weight antioxidants, may represent a source of new drugs for the pharmaceutical industry.

OXIS International (NASDAQ: OXIS) is a leading drug development and diagnostic company dedicated to the research and development of antioxidants and free radical scavengers to diagnose and treat diseases associated with reactive oxygen species.

Statistics:

• Value of the acquisition: approximately $3,940,000
• Potential additional earnings for Therox shareholders: up to $2,000,000
• Number of patents acquired: seven
• Number of new antioxidant compounds synthesized: over 100
• Year Therox was founded: 1993

Sources:

• BUSINESS WIRE, "OXIS International, Inc. Signs Letter of Intent to Acquire Therox Pharmaceuticals, Inc.", June 12, 1995
• NASDAQ: OXIS
• S.R. One, Limited
• Brantley Venture Partners II L.P.
• University of Wisconsin School of Pharmacy
• The George Washington University School of Medicine