Heidelberg, October 16 2008 – SYGNIS Pharma AG (Frankfurt: LIO; ISIN DE0005043509; Prime Standard) today announced that it has, with the approval of its Supervisory Board, decided to increase the equity capital to further advance the development of its innovative CNS focused pipeline and to facilitate further growth of the company. SYGNIS will issue up to 12,694,967 ordinary shares from authorised capital and increase its equity capital from 28,563,676.00 euros to up to 41,258,643.00 euros. The new shares will be offered to existing shareholders at a subscription price of 1.44 euros per share at an exchange ratio of 9:4. The subscription period runs from 21st October until 4th November 2008. A commitment to subscribe up to 12,694,967 shares has been given by SYGNIS’ two main investors, dievini Hopp and BASF SE and the final figure will be dependent upon the uptake by other investors.
The funds raised will be used in part to finance a Phase II efficacy trial for AX200, SYGNIS’ lead product, in the treatment of acute ischemic stroke which SYGNIS expects to initiate by the end of fiscal year 2008/2009. Moreover, SYGNIS will continue to focus on the expansion of its product pipeline of CNS-drug candidates in additional indications. SYGNIS has been granted Orphan Drug Designation (ODD) for AX200 in the treatment of ALS and recently received a recommendation from the Committee for Orphan Medicinal Products (COMP) of the European Medicines Agency (EMEA) for AX200 in the treatment of spinal cord injury. The additional capital raised will thus also be used to continue research in these indications. With the acquisition of Amnestix Inc. in June 2008 SYGNIS will secure a future flow of novel drug-candidates into its pipeline and strengthen its position as an innovator in discovering and developing new therapies for CNS diseases. Alongside, SYGNIS will continue its strategy of screening the market for attractive licencing opportunities as it looks to diversify its product pipeline.
Peter Willinger, CFO of SYGNIS Pharma AG, said: “The funds raised from this capital increase, including the subscription commitment by dievini Hopp and BASF SE, will enable us to progress the development of the drug candidates currently in our pipeline while at the same time exploring market opportunities for additional growth.”
About AX200
AX200 is a biological molecule, developed by SYGNIS for the treatment of neurodegenerative diseases. In the indication stroke it is the most advanced drug candidate in SYGNIS’ product pipeline. In Summer 2007 the Phase IIa of the clinical development was successfully completed. AX200 is an endogenous protein. As part of the body's own protective action the production of AX200 is boosted after brain damage. If the molecule is given as a medication it increases the existing endogenous response to the damage. SYGNIS pursues a multiple neurotherapeutic approach in the development of AX200 for the treatment of neurodegenerative diseases: AX200 stops neuronal cell death in the acute phase of the disease while at the same time stimulating the regeneration of the already damaged CNS through the stimulation of neurogenesis as well as arteriogenesis and the reorganisation of neuronal networks. Besides stroke, AX200 is currently in pre-clinical testing for further neurodegenerative indications such as Amyotrophic Lateral Sclerosis and Spinal Cord Injuries.
About SYGNIS Pharma
SYGNIS Pharma AG, headquartered in Heidelberg, is a specialty pharmaceutical company listed on the Prime Standard of the German stock exchange. The Company is focused on the research, development and marketing of innovative therapies for the treatment of disorders of the Central Nervous System. These include Stroke, Amyotrophic Lateral Sclerosis and neurological disorders resulting from injuries to the brain or spinal cord. All these disorders are characterized by the fact that, as the disease progresses, nerve cells are damaged and die. Although there is great medical demand, there are currently no or only inadequate treatment options available.
One of the central elements in this value-creation chain is the continued development of the existing product pipeline. This is achieved by testing the Company’s proprietary compounds which are already under development in a number of further CNS indications (“line extension”). By means of specific R&D programs at SYGNIS, new pre-clinical drug candidates are identified and evaluated and suitable CNS product candidates are also systematically tested for the purpose of acquisition or in-licensing.
For further information please contact:
SYGNIS Pharma AG:
Dr. Franz-Werner Haas
Vice President Operations
+49 (0) 6221 454 812
franz-werner.haas@sygnis.de
