Reaxa plans launch of sister biotech company
Reaxa, the company spun out of Avecia in June 2005, is planning to launch a biotechnology-focused sister company early next year.
Reaxa, the company spun out of Avecia in June 2005, is planning to launch a biotechnology-focused sister company early next year.
The move comes in the wake of favourable results in Reaxa's first half-year trading as an independent company, which saw sales of its EnCat catalyst and QuadraPure scavenger resin come in ahead of expectations at US$740,000 (Euro 611,235; £423,390). Furthermore, EBITDA was 12% above budget while first-half costs and cash positions were also better than budget.
Based on its first half-year and the Q3/Q4 orderbook, the company is planning to raise up to $6m (€5m; £3.4m) to fund the start-up of a new biopharma technology business unit. "Reaxa Biotech" will leverage the company's strengths in polymer drug conjugation, solid-phase synthesis, drug immobilisation and controlled release polymer technologies to create a separate business, alongside the company's current precious metal chemistry and supported reagents operations.
Reaxa's biotech focus will be to extend current capabilities into the development of controlled release conjugates and formulations. The company has recently been successful in securing biotechnology-related drug-polymer modification projects for completion during 2006.
"Our first six months of operation have laid a strong foundation for the next stage in Reaxa's development, with technology applications in biopharma as a clear strategic step," said ceo Dr Pete Jackson. "There are still unmet medical needs, for example, in the oncology and wound care segments, where we can apply our intellectual property, skills and know-how to help deliver drugs more effectively to their target."
In its precious metal chemistry business, Reaxa has recently signed agreements with Biotage that will see the introduction in 2006 of new microwave-compatible Pd EnCat catalysts (MicroEnCat) and QuadraPure scavenging resins in ready-to-use cartridge format. The agreements mark a growing focus on developments in flow-through processing for API clean-up.
The company has also begun development of its ChemDose controlled delivery system, which it expects to yield commercial products in 2007, while progress has also been made in the development of new Ni- and Pt-based EnCats, which are planned for launch around the second-quarter of this year.