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Oculus Innovative Sciences'
Ruthigen, Inc., a biopharmaceutical company focused on a unique and new drug
candidate, RUT58-60, today announced it has established independent offices at
a new facility in Santa Rosa, California, in preparation for spinoff and an
intended public offering in 2013. RUT58-60 is a drug candidate intended for
accelerating patient discharge post surgery, on average 25% faster, as
compared to current standards of care. RUT58-60 contributes to prevention and
treatment of infections in hospital settings, as well as healing incision
sites via promotion of angiogenesis.
Designed to prevent and treat infections, including MRSA and C
diff, RUT58-60's addressable market includes 46 million surgical and trauma
procedures performed in U.S. hospitals and more than 200 million procedures
globally.
Hoji Alimi, founder and CEO of Ruthigen said: "The spinoff of Ruthigen is part
of our growth strategy with an eye to providing current Oculus
shareholders equity in both companies. I'm proud to have been able to lead a
dedicated team that has grown Oculus from a clinically focused biotech during
the Wall Street meltdown of 2008 to the successful commercial company it is
today—with a revenue run rate of $18 million, 39% average product revenue
growth rate over the past three years and EBITDAS losses of only $235,000 for
the first six months of the current fiscal year. Oculus is on track for
profitability and has a strong cash position of $8.3 million as of the end
of September 2012. I plan to focus Ruthigen on development of its unique drug,
RUT58-60, to accelerate patient discharge post surgery as demonstrated in a
number of clinical investigations and peer-reviewed publications. Finally, I
am confident that Jim Schutz is the ideal candidate to take the wheel at
Oculus given his experience in licensing, mergers, acquisitions and
partnering."
Jim Schutz, newly appointed CEO of Oculus said: "Oculus is well positioned to
achieve profitability and sustainable growth over the next few years. In
parallel with the Ruthigen spinoff, the Oculus team is focused on accelerating
revenue growth by offering new products through current partners, the addition
of new partners, and all while expanding our international footprint. We
believe the one-two punch of Ruthigen and Oculus will benefit shareholders
today and going forward."
Ruthigen Spinoff Preparations
Oculus management is working with securities counsel and bankers on a plan to
provide equity in Ruthigen to Oculus shareholders. Oculus expects the spinoff
to be a tax-free stock distribution and ultimately anticipates Ruthigen to
become an independent NASDAQ-traded company. Oculus has retained bankers and
financial advisors for the spinoff, and expects the spinoff to be completed in
2013. Execution of the transaction requires further work relative to
structure, governance and other significant matters and risks.
The completion of the proposed spinoff is subject to certain customary
conditions, including final approval by Oculus' board of directors, the filing
and effectiveness of appropriate filings with the U.S. Securities and Exchange
Commission including a registration statement on form S-1, and any necessary
third-party consents, as well as certain other matters relating to the
spinoff, receipt of legal opinions, execution of intercompany agreements, and
final approval of the transactions contemplated by the spinoff, as may be
required under Delaware law. Oculus notes that there can be no assurance that
any separation transaction will ultimately occur, or, if one does occur, its
terms or timing.
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