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DNX DEDICATES RESOURCES TO XENOGRAFTS AND PHARMAKON; COMPANY TO CURTAIL BLOOD SUBSTITUTE PROGRAM; CORPORATE BURN RATE TO BE CUT DRAMATICALLY

 PRINCETON, N.J., Oct. 4 /PRNewswire/ -- DNX Corporation (NASDAQ: DNXX) today announced that the company has decided to curtail development efforts on its capital-intensive, hemoglobin-based blood substitute program, a move that will dramatically cut the company's burn rate. DNX will now dedicate its resources to capitalizing on recent scientific breakthroughs in its xenograft program and on opportunities with Pharmakon, a growing, revenue-generating business.
 As previously announced, DNX has been seeking financial support for its capital intensive blood substitute program from a number of corporate partners. "The significant cash requirements to develop the product have proven a major obstacle to obtaining a corporate partner. Over the weekend, we received word that the most likely corporate partner has decided against entry into this business," said Paul J. Schmitt, president and CEO. "While we have enjoyed excellent technical progress on our blood substitute program, it has been an expensive venture and has drained our capital resources at a time when we have made exciting advances in other areas of our business. Because of our inability to find a corporate partner, we have decided to reallocate capital to our xenotransplantation program.
 "Dramatically cutting our burn rate will allow us to continue our rapid pace of scientific progress in the xenotransplantation program," said Mr. Schmitt. "The combination of Pharmakon and our exciting work on developing transgenic pigs for xenotransplantation leaves DNX with a strategically well balanced portfolio of business opportunities to pursue."
 DNX Corporation is a life sciences company operating through two wholly owned subsidiaries. DNX Biotherapeutics, Inc., is a leader in the research and development of organ transplantation products largely based on transgenic animal technology. Pharmakon Research International is a leading supplier of preclinical and biological testing services to the biotechnology, pharmaceutical and chemical industries.
 -0- 10/4/93
 /CONTACT: Paul J. Schmitt, president and CEO of DNX, 609-520-0300; or Anthony J. Russo, Ph.D., of Noonan/Russo Communications, 212-696-4455/
 (DNXX)


CO: DNX Corporation ST: New Jersey IN: MTC SU:

GK-LG -- NY029 -- 8194 10/04/93 09:13 EDT
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Publication:PR Newswire
Date:Oct 4, 1993
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