Oculus' Ruthigen Establishes Independent HQ, Expecting IPO in 2013
Oculus Innovative Sciences' (NASDAQ: OCLS) 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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