21/03/2010

AgResearch Business Partners Face Financial Collapse?

 

Overseas partners in AgResearch’s controversial plans for Genetically Engineered animals in New Zealand are facing yet again financial collapse.

Genzyme Transgenic Corporation (GTC) has announced it is about to be de-listed from the stock exchange and has made a $27m loss over recent times.

The other partner ‘Pharming NVL’ is holding an extraordinary meeting for shareholders as it scrambles to stay financially viable for the second time. In early 2000 they went into a court-supervised receivership and were able to carry on trading. Genzyme Corporation brought all their assets.

The Environmental Risk Management Authority (ERMA) is considering an application to approve unlimited number GE animal experiments, in partnership with these two companies, over an indefinite time frame despite a High Court decision which rejected such broad applications.

“This could impact seriously on the viability of such experiments, as both companies were the subject of warnings from submitters to ERMA about the Corporations risky financial performance” said Mrs. Bleakley.

“It is astonishing that yet again the New Zealand public faces being left with a deformed group of GE animals and stung with the costs related to financial failure of companies overseas,’

In its latest announcements (see links below) GTC mentions its partnership with AgResearch but reveals poor financial performance and the fact that it is scrambling to find other ‘business partners’ to keep its projects alive.

“GTC does not expect to regain compliance with the minimum $35 million market value of listed securities requirement for continued listing under the NASDAQ Listing Rules by the March 16, 2010 deadline established by the NASDAQ Listing Qualifications Panel. Accordingly, GTC expects that its common stock will cease to be listed on the NASDAQ Capital Market on or after March 18, 2010”.

“GTC Biotherapeutics, Inc. ("GTC",GTCB) today reported its financial results for the fourth quarter and fiscal year ended January 3, 2010. The total net loss for the fourth quarter was $1.7 million, or $0.09 per share, compared with $6.2 million, or $0.60 per share, for the fourth quarter of 2008. The total net loss for 2009 was $27.9 million, or $2.18 per share, compared to $22.7 million, or $2.31 per share, for 2008.”

“A previous trial of GM animals conducted by PPL, collapsed in disarray and resulted in thousands of GM sheep being destroyed without scientific testing of the animals or land on which they were kept. The site is now owned by the government electricity agency Transpower and is blacklisted as a dairy block as a precaution from possible GE contamination.” Mrs. Bleakley said.

ERMA has so far refused to consider the exposure of cost to the public as a result of AgResearch entering partnerships with these companies. There has also been no response to serious questions about conflicts of interest arising from the involvement of ERMA’s committee members in previous GM projects and their support for commercialisation of GE.

ENDS

Claire Bleakley 06-3089842 / 027 3486731

Jon Carapiet – 0210507681

References

GTC Report

http://finance.boston.com/boston/?GUID=12272753&Page=MediaViewer&Ticker=GTCB.

Pharming NVL

Pharming To Hold Extraordinary Shareholders’ Meeting Leiden, The Netherlands, March 15, 2010. Biotech company Pharming Group NV (“Pharming” or “the Company”) (NYSE Euronext: PHARM) announced today that it will hold an Extraordinary General Meeting of Shareholders (EGM) on 30 March 2010. At the EGM, the Company will request approval from shareholders on administrative items pertaining to its share capital as well as changes in composition to the Board of Management.

On the share capital, the current number of outstanding shares is 154.5 million and current authorized share capital is 200 million. The majority of the remaining 45.5 million shares is reserved to be able to convert the outstanding convertible debt facilities of in total €18.4 million to equity, if and when necessary. As the available authorized share capital is limited, Pharming requires new shares in share capital to raise additional funds for the Company if and when needed. The Company will request approval to raise the authorized share capital with 200 million shares to 400 million shares and to lower the nominal value of the shares from €0.50 to €0.04. The approval of these items would provide Pharming with more flexibility in view of anticipated regulatory and commercial events in both the European Union and North America.

Genzyme to Acquire Certain Assets of Pharming N.V.

http://www2.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/09-19-0001/0001575010&EDATE=

Conflicts of Interest at ERMA
http://findarticles.com/p/news-articles/waikato-times/mi_8054/is_20100316/rehearing-ge-bid-demanded/ai_n52484203/

ERMA application ERMA200223

Transpower releases preferred route for Whakamaru line http://www.3news.co..nz/Transpower-releases-preferred-route-for-Whakamaru-line/tabid/421/articleID/144508/Default.aspx



back to directory