SARASOTA, Fla., Sept. 6, 2005 (PRIMEZONE) -- DNAPrint(tm) genomics, Inc. (OTCBB:DNAG), which holds an 18% stake in German pharmaceutical company Biofrontera AG, today announced that Biofrontera has completed a 20 million euro bond placement.
The bonds began trading on the Frankfurt exchange on Wednesday, August 31, under the symbol (ISIN DE 000 A0E 964 9). If Biofrontera completes a public offering in the future, each purchaser in the offering at 100 euros can convert to 6.2 shares of Biofrontera stock. This conversion rate attributes a price of 16.13 euros per share to the Biofrontera common shares. If this accurately represents the fair market value of the Biofrontera common stock, then DNAPrint's 455,179 shares of Biofrontera stock, which it acquired for 1.5 million euros in July 2005, would now be valued at approximately 7.3 million euros.
"We believe our investment in Biofrontera will prove to be beneficial to DNAPrint genomics and to our shareholders," said DNAPrint genomics President and Chief Executive Officer Richard Gabriel. "It validates our decision to build a collaborative relationship with Biofrontera in advance of its anticipated initial public offering."
"Biofrontera is an excellent business partner for us because of its drug-product pipeline," said Hector J. Gomez, Ph.D., Chairman and Chief Medical Officer at DNAPrint genomics. "We are pleased with our relationship with Biofrontera, and we have the highest confidence in its management team. We are confident the new funding will assist Biofrontera in advancing its drugs into the market."
Mr. Gabriel and Dr. Gomez both are members of Biofrontera's Board of Directors.
"DNAPrint genomics, Inc. and its support were crucial to our securing this new financing," said Prof. Hermann Lubbert, Chief Executive Officer of Biofrontera AG. "We look forward to building our relationship with DNAPrint and believe that the synergy of the two companies and their technologies may offer a faster, cheaper and more effective way to develop drugs," he concluded.
Biofrontera already is in Phase II clinical trials for its lead product, an anti-itch compound for chronic Urticaria, or chronic itching. It also has a Phase II clinical trial compound for pre-cancerous skin lesions. In addition, Biofrontera has advanced several compounds to pre-clinical development, including a novel prophylactic migraine treatment.
About DNAPrint genomics, Inc.
DNAPrint genomics, Inc. (www.dnaprint.com) is a developer of genomics-based products and services focused on drug development, pharmacogenomic diagnostic tests, forensics technology and consumer genetic tests. The Company's first theranostic product (drug/test combination) is PT-401, a "Super EPO" (erythropoietin) dimer protein drug for treatment of anemia in renal dialysis patients (end stage renal disease). Currently in pre-clinical development, PT-401 will be targeted to patients with a genetic profile indicating their propensity to have the best clinical response. DNAPrint's family of products for the law enforcement forensics and consumer markets include DNAWitness(tm) RETINOME(tm) (a predictive test for inferring eye color from a DNA sample), ANCESTRYbyDNA(tm), and EURO-DNA(tm). Recently announced and as a part of the Company's Trace Genetics acquisition, DNAWitness-Y and DNAWitness-Mito are two new tests that can be used as identification tools when other DNA testing either fails to yield results or the sample might be too deteriorated.
About Biofrontera AG
Biofrontera is aiming to become a specialty pharma business in dermatology and inflammatory diseases. The company is located in Leverkusen, Germany. Biofrontera's existing investor group includes Heidelberg Innovation, TechnoMedia Kapitalbeteiligungsgesellschaft Koln mbH, and Prof. Dr. Riesner, founder of Quiagen AG. The financial resources provided by the bond will be applied to the further development of Biofrontera's clinical products. The bond will be placed on the Frankfurt Exchange under the symbol (ISIN DE 000 A0E 964 9).
Forward-Looking Statements
All statements in this press release that are not historical are forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including, but not limited to, uncertainties relating to technologies, product development, manufacturing, market acceptance, cost and pricing of DNAPrint's products, dependence on collaborations and partners, regulatory approvals, competition, intellectual property of others, and patent protection and litigation. DNAPrint genomics, Inc. expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in DNAPrint's expectations with regard thereto or any change in events, conditions, or circumstances on which any such statements are based.