Navigation Links
Synovics Pharmaceuticals Announces Additional Investment by Svizera and Reduction of Debt

FORT LAUDERDALE, Fla., Dec. 10 /PRNewswire-FirstCall/ -- Synovics Pharmaceuticals, Inc. (OTC Bulletin Board: SYVC), a specialty pharmaceutical company, today announced a further reduction of its debt by paying off the last remaining $780,000 of the "Kirk 2008 Bridge Loan" through the sale of additional Series C Convertible Redeemable Preferred Stock ("Series C Preferred Stock") in that amount.

As previously reported in the Current Report on Form 8-K dated May 15, 2008, the Company completed an initial closing on May 9, 2008 of its Series C Preferred Stock offering (the "Series C Offering"). On August 21, and September 25, 2008 the Company completed additional closings of its Series C Offering whereby, in consideration for a total additional investment of $1.78 million, Synovics sold to Svizera Holdings BV ("Svizera"), an affiliate of Maneesh Pharmaceuticals, Ltd., a total of 3,560 shares of Series C Preferred Stock, convertible into 3,560,000 shares of common stock, together with warrants to acquire up to an additional 1,780,000 shares of common stock. Svizera (and Maneesh) have invested a total of $14,080,000 as equity in Synovics.

The cash received was used to further reduce the Company's short and long term debt. Total Company debt owed on May 9, 2008 including accrued interest was $20,640,683. Capital provided by investors to Synovics this year, including funds in the latest tranche of the Series C Offering, has allowed the Company to reduce or pay off debt, including satisfying the "Kirk 2008 Bridge Loan" arranged through Axiom Capital Management. As shown in the table below, the current reduced outstanding debt (principal and accrued interest) owed by the Company is $6,190,000, of which $5,650,000 is indebtedness under the Company's credit facility with Bank of India.

                               October 15, 2008     May 9, 2008
    2005 Bridge Notes                        $0      $4,036,923
    2007 Bridge Notes                         0               -
    2008 Bridge Notes                         0       6,917,478
    Customer Note                             0         644,242
    Seller Note                         500,000       2,010,000
    Bank of India                     5,650,000       6,950,000
    Other                                40,000          82,040
    Total                            $6,190,000     $20,640,683

"The successful restructuring of our balance sheet and the resulting reduction of Company debt has been our goal for the past many months and I am most pleased with this accomplishment," commented Jyoti Gange, Principal Executive Office. "The reduction of debt and related interest costs is expected to have a very positive effect on our operations as we continue to build on and execute our business plan."

"This additional investment in the Synovics by Svizera," stated Ronald Howard Lane, Ph.D. Chairman of the Board, "is evidence of Svizera's ongoing and overall support of our endeavors to grow the Company."

About Synovics:

Synovics is a specialty pharmaceutical company engaged in the development, manufacturing and commercialization of prescription and OTC drugs. The Company has two operating subsidiaries, Kirk Pharmaceuticals, LLC and ANDAPharm, LLC, which manufacture and sell OTC and prescriptions private label or "store brand" drugs, respectively, and a drug development subsidiary, Synovics Labs, Inc., that is pursuing generic drug opportunities. Synovics employs approximately 150 people in its 80,000 sf. Ft. Lauderdale facility. The Company manufactures drug products (including hormonal prescription drugs) in specialized containment suites under its Drug Enforcement Administration licenses. The Company has a Front-End strategy based business plan -- a strategy of sourcing lowest cost, highly competitive generic drug products from India, packaged and marketed to its US customers through its Ft. Lauderdale operations. Synovics' previously announced strategic partnerships with Maneesh Pharmaceuticals, Ltd. and Harcharan (Harry) Singh that represent the Company's cornerstone for its Front-End strategy in India. The Company believes cost is the single most important element in the generic drug industry and it is reaching out through its strategic partners to source products and services from a variety of smaller independent Indian pharmaceutical companies that lack access to the US market.

"Safe Harbor" statements under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, the statements made in this press release constitute 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. Forward-looking statements can be identified by their use of words such as "expects," "plans" "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates" and other words of similar meaning. Because such statements inherently involve risks and uncertainties that cannot be predicted or quantified, actual results may differ materially from those expressed or implied by such forward-looking statements depending upon a number of factors affecting the Company's business. These factors include, among others: the difficulty in predicting the timing and outcome of product development including biostudies demonstrating "bioequivalency," outcome of any pending or potential legal proceedings including an undertaking to recover common stock held in escrow; any patent-related matters such as patent challenge settlements and patent infringement cases; the outcome of litigation arising from challenging the validity or non-infringement of patents covering its products; the difficulty of predicting the timing or outcome of FDA approvals; court and FDA decisions on exclusivity periods; the ability of competitors to extend exclusivity periods for their products; the Company's ability to complete product development activities in the timeframes and for the costs it expects; market and customer acceptance and demand for its products; the Company's possible dependence on continued or future revenues from significant customers; the use of estimates in the preparation of the Company's financial statements; the potential for competitors to file ANDAs prior to any filing by the Company pertaining to the same target brand; the impact of competitive products and pricing on products, including the launch of authorized generics; the ability to launch new products in the timeframes it expects; the availability of raw materials or "APIs"; the availability of any product it may purchase; the regulatory environment; the Company's exposure to product liability and other lawsuits and contingencies; the increasing cost of insurance and the availability of product liability insurance coverage; the Company's timely and successful completion of strategic initiatives, including integrating companies and products it may acquire and implementing its Front-End India strategy; fluctuations in operating results, including the effects on such results from spending for research and development, sales and marketing activities and patent challenge activities; the inherent uncertainty associated with financial projections; the outcome of ongoing efforts to improve Kirks operational efficiency and customer performance; changes in generally accepted accounting principles, fluctuations in operating results; capital adequacy; statements of future plans relating to the Company's capital needs, product development and filings with the FDA, viability, application or continuation of the Company's business licenses including Drug, Enforcement and Administrations licenses for scheduled drugs; business and growth strategies; statements specifically concerning the successful closing of acquisitions, and satisfying closing conditions of any current or future financial transactions including debt or equity requirements, regulatory requirements; and meeting conditions set by potential equity investors, reliance on key strategic alliances, capital markets, and in general risks related to the regulatory environment and government approval processes, and any other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. The forward-looking statements contained in this press release speak only as of the date the statement was made. The Company undertakes no obligation (nor does it intend) to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required under applicable law.

SOURCE Synovics Pharmaceuticals, Inc.
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. Synovics Pharmaceuticals Announces the Appointment of Jyotindra Gange as Principal Executive Officer
2. Synovics Pharmaceuticals Announces Execution of Hormonal Manufacture and Supply Contract
3. Synovics Pharmaceuticals Files Its Second Quarter, 2008 Form 10Q with the SEC
4. Synovics Pharmaceuticals forms a Strategic Joint Venture with Maneesh Pharmaceuticals
5. Peregrine Pharmaceuticals Reports Financial Results for the Second Quarter of Fiscal Year 2009
6. Celator(R) Pharmaceuticals Presents Phase 1 Results With CPX-351 in Patients With Advanced Leukemia at the American Society of Hematology Meeting
7. Arena Pharmaceuticals to Host Research & Development Day on December 15, 2008
8. Arena Pharmaceuticals Announces Lorcaserin Phase 2b Clinical Trial Results Published in Obesity
9. Savient Pharmaceuticals to Present at the 27th Annual J.P. Morgan Healthcare Conference on January 14th
10. ISTA Pharmaceuticals to Participate at the RBC Capital Markets Healthcare Conference
11. Middlebrook Pharmaceuticals Opens Administrative and Sales Office in Westlake, Texas
Post Your Comments:
(Date:10/12/2017)... LA (PRWEB) , ... October 12, 2017 , ... Planet ... in the U.S., announced today its plans to open a flagship location in Covington, ... occupy the former Rooms To Go store next to Office Depot in the Holiday ...
(Date:10/12/2017)... (PRWEB) , ... October 12, 2017 , ... The American ... Excellence to Carol Friedman, PhD, FACMI, during the Opening Session of AMIA’s Annual Symposium ... 8. , In honor of Morris F. Collen, a pioneer in the field of ...
(Date:10/12/2017)... ... 2017 , ... Dr. Parsa Mohebi, the Los Angeles based ... the newly revamped Cosmetic Town journal section, featuring articles written by ... as Follicular Unit Extraction (FUE). , Dr. Mohebi says “I enjoy ...
(Date:10/12/2017)... ... October 12, 2017 , ... On Saturday, October 21, ... relay – Miles by Moonlight to raise money for the American Heart Association Heart ... , Teams will work together to keep their treadmills moving for 5 hours. ...
(Date:10/12/2017)... ... October 12, 2017 , ... In the United States, single-family ... some states—like New York, New Jersey, Massachusetts, Texas, Virginia, Connecticut, and California—the average ... extremely low property-tax rates, which contributes to the relatively lower cost of living ...
Breaking Medicine News(10 mins):
(Date:10/12/2017)... 2017 West Pharmaceutical Services, Inc. ... injectable drug administration, today announced that it will release ... Thursday, October 26, 2017, and will follow with a ... at 9:00 a.m. Eastern Time. To participate on the ... conference ID is 94093362. ...
(Date:10/11/2017)... , Oct. 11, 2017  Caris Life Sciences ... on fulfilling the promise of precision medicine, today announced ... joined Caris, Precision Oncology Alliance™ (POA) as its 17 ... centers, the St. Jude Crosson Cancer Institute will help ... the use of tumor profiling, making cancer treatment more ...
(Date:10/11/2017)... 11, 2017  Hill-Rom Holdings, Inc. ("Hill-Rom") (NYSE: HRC), ... in Las Piedras, Puerto Rico , ... Following a ... sustained minor structural damage, temporary loss of power and ... been completed, manufacturing operations have resumed, and the company ...
Breaking Medicine Technology: