AUCKLAND, New Zealand – 22 August 2000 – Leading New Zealand Biotechnology company, Genesis Research and Development
Corporation Limited, confirmed today that it is proceeding with a NZ$34.5 million initial public share offer and a
listing on both the New Zealand Stock Exchange (NZSE) and the Australian Stock Exchange (ASX).
Genesis will offer 5,750,000 shares at an offer price of NZ$6.00, bringing the company’s market capitalisation to
approximately NZ$148 million.
The company has registered an investment statement and prospectus for the offer with the New Zealand Companies Office
and has also lodged the document with the Australian Securities and Investments Commission. The offer will be open to
both institutional and retail investors in New Zealand and Australia.
Announcing the offer, Genesis Founder and CEO, Dr James Watson said the company was well prepared for an IPO in terms of
its world-class validated research, a solid product pipeline, strong collaborations and a history of successfully
delivering ‘milestones’.
“We look forward to building on the success we have had with a series of successful placements with institutional
investors. Having their endorsement creates an extremely favourable platform for the offer.”
Genesis announced in June that six of New Zealand’s leading investors had subscribed for shares as part of a NZ$13.8
million placement. The institutions included Armstrong Jones, Arcus Investment Management, AXA New Zealand Funds
Management, BT Funds Management and Guardian Trust Funds Management.
Genesis can now confirm that Corixa Corporation (NASDAQ: CRXA), on behalf of itself and Genesis, has entered into a
conditional agreement with Medicis Pharmaceutical Corporation (NYSE: MRX) in relation to the development,
commercialisation and licensing of PVAC, the psoriasis treatment that Genesis is developing jointly with Corixa. If the
agreement is approved, Medicis Pharmaceutical Corporation will pay a non-refundable payment of US$17 million, additional
potential development milestone payments of US$35 million and commercialisation and cumulative net sales threshold
milestone payments of US$55 million. Genesis and Corixa Corporation will share any such payments and any subsequent
royalty entitlement on commercial sales on a pro-rata basis, after a minority portion of these payments is paid to
Stanford Rook Limited for rights in relation to its Mycobacterium vaccae patents.
The offer will see 1.5 million shares reserved for firm allocation to clients of members of the NZSE and ASX as well as
a number of other invited financial intermediaries. In addition, 350,000 shares will be reserved for existing
shareholders. There will be no public pool.
Dr Watson said most of the money raised by the offer will be applied to Genesis’ research and development activities.
“These include the clinical development of our immune therapies for psoriasis and asthma, expansion into eczema, the
development of our forestry genomic platform in a relatively new venture with ArborGen LLC and building new databases
and technology to secure a foundation in agriculture and horticulture.”
The offer is being managed by UBS Warburg New Zealand Limited and the organising broker is UBS Warburg New Zealand
Equities Limited.
The offer is expected to open on Tuesday, 29 August 2000 and close on Thursday, 14 September 2000. Trading on both the
NZSE and the ASX is expected to commence on Friday, 22 September. The offer of Genesis shares is contained in the
investment statement and prospectus. Anyone wishing to apply for shares in the offer will need to complete the
application form that will accompany the investment statement and prospectus.
About Genesis
Genesis is a biotechnology company based in Auckland, New Zealand, with genomic programmes in human health, forestry and
agriculture. Genesis builds EST databases that provide the genomic platform for discovery of novel genes with commercial
value and has considerable experience and expertise in high-throughput DNA sequencing, functional genomics and
development of therapeutics. Partnerships with biopharmaceutical, agricultural, horticultural and forestry companies
have been important for funding research to effectively develop potential products. In addition to the extensive
forestry gene technology, Genesis has a psoriasis therapeutic, PVACTM, in FDA-approved Phase II clinical trials in
partnership with the US-based Corixa Corporation, and a Phase I clinical trial for an asthma therapeutic has been
initiated in Wellington, New Zealand.
Application has been made to the New Zealand Stock Exchange for permission to quote the shares and for the listing of
Genesis Research and Development Corporation Limited. All the requirements of the NZSE in respect of such quotation and
listing that can be complied with on or before the date of the publication of this announcement have been duly complied
with. However, the NZSE accepts no responsibility for any statement in this announcement.
ENDS