« Previous | Next » | All Messages |  BVTI Message Board Home | recommend post |  Ignore Poster

BVTI News U.S. Bank, State of Missouri, and City of St. Louis Partner With Biovest International to Provide Second Round of New Market Tax Credits

WORCESTER, Mass. & ST. LOUIS--(BUSINESS WIRE)--U.S. Bank, the State of Missouri and the City of St. Louis (NYSE:USB) have provided financing and incentives to help further the development of Biovest International’s (OTCBB: BVTI) BiovaxID therapeutic for non-Hodkin’s lymphoma, marking the second time this year that funds have been secured through the use of the New Market Tax Credit (NMTC) program. As part of a financing arranged with Accentia Biopharmaceuticals, Inc. (NASDAQ:ABPI), US Bank purchased $8 million of NMTCs awarded by the St. Louis Development Corporation as part of an investment in a subsidiary of Biovest. The State of Missouri is providing Quality Jobs tax credits to induce the company to locate in Missouri.

“This second round of New Market Tax Credits underscores our belief that this government sponsored program is an extremely favorable way to facilitate reduced dilution financings for Biovest,” said Dr. Steve Arikian, Biovest Chairman and Chief Executive Officer. “These funds will help move us closer to our goal of both the large scale rollout of AutovaxID, as well as providing the necessary manufacturing capabilities for our expected launch of BiovaxID. Governor Blunt’s Quality Jobs Program was also a major factor in our decision to locate this company in Missouri.”

“We are extremely pleased that this company has made a decision to locate this manufacturing facility in Missouri,” said Greg Steinhoff, Governor Blunt’s Director of Economic Development. “This company brings with it the kind of jobs that the Quality Jobs program is designed to attract.”

“The location of this new subsidiary in the City of St. Louis is a major step forward in our drive to attract new jobs and businesses to the City,” said Francis G. Slay, Mayor of the City of St. Louis. “And this is why we sought an allocation of New Markets Tax Credits—so that we could use them to bring exactly this type of company to St. Louis. We are pleased to have played a role in its decision. It is a pleasure working with Greg Steinhoff and the Governor to improve our state and local economies.”

This second round of NMTCs brings Biovest half way to their goal of $25 million in gross NMTC – enhanced financings. Biovest will use the funds, in part, to scale up their new 24,000 sq ft., manufacturing facility at 1701 Mackland Avenue in St. Louis, MO. Additionally, these funds will help increase the number of high paying skilled jobs at the facility while further illustrating Biovest’s ability to become a self-financed subsidiary of Accentia.

About Biovest International, Inc.

Biovest International, Inc.,is a pioneer in the development of advanced individualized immunotherapies for life-threatening cancers of the blood system. Biovest is a majority-owned subsidiary of Accentia Biopharmaceuticals, Inc., (NASDAQ:ABPI - News) with its remaining shares publicly traded. Biovest has a foundation in the manufacture of biologics for research and clinical trials. In addition, Biovest develops, manufactures and markets patented cell culture systems, including the innovative AutovaxID(TM), which is being developed as an automated vaccine manufacturing instrument and for production of cell-based materials and therapeutics. Biovest's therapy for follicular non-Hodgkin's lymphoma is currently in a Phase 3 pivotal clinical trial at more than 20 major centers in the U.S., and is being conducted under a Cooperative Research and Development Agreement (CRADA) with the National Cancer Institute. For further information, visit the Company Web site at www.biovest.com.

Forward-Looking Statements

Statements in this release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements about AutovaxID, BiovaxID and any other statements relating to products, product candidates, and product development programs of Accentia and/or Biovest. Such statement may include, without limitation, statements with respect to either Company's plans, objectives, expectations and intentions and other statements identified by words such as "may", "could", "would", "should", "believes", "expects", "anticipates", "estimates", "intends", "plans" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results of either Accentia or Biovest to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, risks and uncertainties related to the progress, timing, cost, and results of Accentia's and/or Biovest's clinical trials and product development programs; difficulties or delays in obtaining regulatory approval for product candidates; competition from other pharmaceutical or biotechnology companies; and the additional risks discussed in filings of Accentia and Biovest with the Securities and Exchange Commission. All forward looking statements are qualified in their entirety by this cautionary statement, and neither Accentia nor Biovest undertakes any obligation to revise or update this news release to reflect events or circumstances after the date hereof.