NEW YORK, March 11, 2010 (GLOBE NEWSWIRE) -- Laxai Pharma, Ltd. (f/k/a NexGen Biofuels, Ltd.) (OTCBB:NXGNF) today announced that it has completed its first acquisition in the clinical research services space by purchasing all of the assets of OSR Solutions, Inc. ("OSR"), a New Jersey based contract research organization ("CRO"), for $3.6 million consisting of the following: $1.5mm in cash, $0.75mm in notes, $0.60mm in assumed liabilities, and 5.6mm common shares of Laxai Pharma, Ltd. -- about 10% of the issued and outstanding common shares at closing. The acquisition was financed by a combination of debt and equity.
Laxai Pharma's Chairman and CEO, Ram Ajjarapu, commented, "We hope that this platform acquisition of OSR is only the first in a line of targets we have mapped out in our business plan. We are excited about the excellent client base, the strong financial performance and the broad range of skills of the OSR team. We are also extremely pleased that Vamsi Maddipatla, OSR's President and founder and Naren Mallakunta, OSR's CEO and well-seasoned CRO executive, are 100% committed to our plan and in helping us accelerate the growth of Laxai Pharma into a substantial player in the CRO marketplace."
Mr. Maddipatla added, "When Ram approached me with the opportunity to combine forces, I was extremely enthusiastic. There is clearly an opening for a smart, highly motivated company with a strong team to rapidly build market share organically and by acquisition both in the US and overseas."
OSR d/b/a LAXAI is a leading CRO providing integrated services across the drug development spectrum. Clinical Research Services are provided out of LAXAI's headquarters in South Plainfield, NJ, in the United States. LAXAI employs about 60 professionals and is primarily engaged in the areas of Biostatistics, Data Management (EDC, Hybrid and Paper), CDISC consulting, Medical Writing, Monitoring, Regulatory, Drug Safety, and Training. More information on the company can be found at www.laxai.com.
SAFE HARBOR: This press release contains certain forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. With the exception of historical information contained herein, the matters discussed in this press release involve risk and uncertainties. Actual results could differ materially from those expressed in any forward looking statement made by or on behalf of Laxai Pharma, Ltd. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect Management's judgment based on assumptions as of the date hereof which may or may not prove to be correct. Readers are referred to the documents filed by the company with the United States Securities and Exchange Commission, that identify important risks which could cause actual results to differ from those contained in the forward looking statements.