Gent - 05 November 2008 - Devgen announces the intention to close its
pharma division and to fully focus on the development of its agro
business.
In November 2007, Devgen announced its intent to divest its pharma
unit in order to focus on its agro-activities. Through its research
activities in Belgium, Devgen has developed a unique technology
position in crop protection and has grown to a fully integrated trait
and seed business in Asian growth markets, with a focus on rice,
sorghum, sunflower and pearl millet and a licensing business in other
crops. Devgen's pharma division focuses on the development of a novel
class of preclinical drug candidates for the treatment of
inflammatory diseases.
Devgen took this decision to offer its promising agro division the
maximal growth opportunities. Both divisions require substantial
investments and in this stage of their development do not have
synergies any longer. The pharma activities furthermore carry a
substantially higher risk profile.
During the past year the company has continued its investments in its
pharma programs and substantial efforts were made to divest the
pharma division. In the deteriorating financial and investment
climate, potential candidate investors (venture capitalists, biotech-
and pharma companies) have become more risk averse, independent of
the quality of the pharma programs. This has thwarted Devgen's
divestment process. Devgen therefore today decided to no longer
invest in the development of its pharma programs and to initiate the
dismissal of the 19 employees of its pharma division. Today, 217
people are employed by the Devgen group worldwide.
In line with this strategy Devgen will focus its available resources
on its agro activities. The company's activities in Ghent include,
furthering its key technologies (RNAi for crop protection, trait
development and molecular breeding), bringing its candidate
nematicide to market, and the IP and business coordination of its
growing trait and seed business in India and in South-East Asia.
These activities do have significant synergies, are close to market
and sustainable revenue growth and offer Devgen the best
opportunities for growth and development.
"This serious step was taken after consideration of all possible
alternatives taking into account the interests of all stakeholders.
In the current market the chance to valorize Devgen pharma assets
without further major investments of the company is remote." explains
Thierry Bogaert, CEO of Devgen. "Devgen will focus its resources and
will further develop in the agro-market segment where the company has
the strongest technology and business opportunities: the trait and
seed opportunities in rice, an important growth market in which the
company is well positioned to develop its technology and business
faster than the market and to build a leadership position."
About Devgen
Devgen is a public agricultural biotech and seed company focused on
developing and commercializing:
* biotech traits and hybrid seeds to meet the growing needs for high
yielding, high quality hybrid rice, sorghum, millet and sunflower
of the Indian and other south-east Asian markets;
* a novel generation of biotech products to protect a wide spectrum
of crops incurred from pests; to render crops more tolerant
against stress factors such as drought and salty soils and to
decrease the need for fertilizer use by optimizing nitrogen uptake;
* a new generation of agrochemical products to protect crops from
damage inflicted by plant parasitic nematodes.
Incorporated in 1997, Devgen has offices in Ghent (Belgium),
Singapore, Hyderabad (India) and Delaware (US) and employs more than
200 people worldwide. Devgen is listed on Euronext Brussels (ticker:
DEVG) since June 2005.
For more information please contact:
Thierry Bogaert, CEO Wim
Goemaere, CFO
Tel. +32 9 324.24.24 Tel.
+32 9324.24.24
Thierry.Bogaert@devgen.com Wim.Goemaere@devgen.com
or visit: www.devgen.com
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the words "anticipates", "expects" , "intends", "plans", "estimates",
"may" and "continues" as well as similar expressions. Such forward
looking statements may involve known and unknown risks, uncertainties
and other factors which might cause the actual results, performance
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