Message #18 From:
NewsBot Date: October 18, 2006 09:46:00 AM
XKEM News U.S. Ex-Im Bank has Approved Comprehensive Guarantee to Support $9.38 Million Loan from UPS Capital to Xechem Pharmaceuticals Nigeria
NEW BRUNSWICK, N.J.--(BUSINESS WIRE)--Xechem International, Inc. (OTC BB: XKEM) announced today that
the United States Export Import (Ex-Im) Bank, the official credit export
agency of the United States, has approved a Comprehensive Credit
Guarantee to support a $9.38 million loan from UPS Capital Business
Credit to Xechem Pharmaceuticals Nigeria, Ltd. (Xechem Nigeria). Two
Nigerian banks, Access Bank Plc. and Diamond Bank, Plc., are to provide
the required Nigerian local bank guarantees in favor of Ex-Im Bank.
Funds Earmarked for Establishment of State-of-the-Art Pharmaceutical
Facility in Sheda Science Village, Sheda, FCT, Abuja, Nigeria
The funds to be provided by UPS Capital under the Ex-Im guaranteed loan
will be used to purchase the U.S. manufactured plant equipment and
machinery needed by Xechem Nigeria to establish a state-of-the-art
pharmaceutical facility. The first phase of construction of the new
facility began in July of this year. The total cost of the project is
estimated at $12.45 million, of which $9.38 million will come from the
U.S. loan. The expanded pharmaceutical facility, once completed, will
enable Xechem Nigeria to produce commercial scale quantities of NICOSAN™,
Xechem’s breakthrough medicine for the
prophylactic management of Sickle Cell Disease (SCD).
Xechem Nigeria received regulatory approval for the manufacture, sales
and marketing of NICOSAN™ from Nigeria’s
National Agency for Food and Drug Administration and Control (NAFDAC) on
July 3rd, 2006, and officially launched the
drug just a few days later at a ceremony presided over by His
Excellency, General Olusegun Obasanjo, the President of Nigeria. The
drug is currently being produced by Xechem Nigeria in limited quantities
at its pilot-scale facility in Abuja.
Dr. Ramesh Pandey, Chairman and CEO of the Xechem Companies said, “We
are very pleased that this most anticipated guarantee from the U.S.
Ex-Im Bank has now been approved and that we can now accelerate pursuit
of our dream of building what we believe will be one of the finest
state-of-the-art cGMP standard pharmaceutical facilities in Nigeria.
Even more importantly, the Ex-Im guaranteed loan will help insure that
we can produce commercial scale quantities of NICOSAN™
to meet the needs of the millions of people afflicted with this terrible
disease. We are very grateful to Ex-Im Bank, UPS Business Credit, Access
Bank and Diamond Bank, as well as our financial consultants,
Financialbridge, Inc., for their support for this important project and
for helping us make the dream a reality.”
About Sickle Cell Disease
Sickle Cell Disease (SCD) is an inherited blood disorder caused by an
abnormality in the hemoglobin molecule. Patients with the disease often
produce stiff, abnormally shaped red blood cells that often do not flow
freely through the blood vessels. This can create clogs in the vessels,
which in turn can cut off the flow of normal hemoglobin and oxygen to
parts of the body, and can cause severe painful attacks or “crises”,
damage to various organs and shortened life spans. People with SCD often
suffer unpredictable painful crises several times a year lasting from a
few hours to a week or more. In the US, there are approximately 80,000
patients with SCD. In Nigeria, that number is believed to be
approximately 4 million, with an estimated 10 - 12 million sufferers
throughout the African continent. Worldwide, at least 16 million
individuals are believed to be afflicted with SCD.
About Xechem
Xechem International is a development stage biopharmaceutical company
working on Sickle Cell Disease (SCD), antimalarials, and antiviral
(including AIDS), anticancer, antifungal and antibacterial products from
natural sources, including microbial and marine organisms. Its primary
focus is on the development of phyto-pharmaceuticals (Natural Herbal
Drugs) and other proprietary technologies, including those used in the
treatment of orphan diseases. Xechem’s
mission is to bring relief to the millions of people who suffer from
these diseases. Its recent focus and resources have been directed
primarily toward the development and launch of NICOSAN™
(named HEMOXIN™ in the US and Europe) for the
prophylactic management of Sickle Cell Disease (SCD). With the recent
Nigerian regulatory approval of NICOSAN™,
Xechem is now scaling-up the commercialization of the drug in Nigeria
and making preparations for the pursuit of US FDA and European
regulatory approval. In addition to NICOSAN™,
Xechem is also working on another sickle cell compound, 5-HMF, which it
has licensed from Virginia Commonwealth University.
Forward Looking Statements
This press release contains certain forward looking statements within
the meaning of Section 27A of the Securities Act of 1933 as amended, and
section 21E of the Securities and Exchange Act of 1934, as amended,
which are intended to be covered by safe harbors created hereby. Such
forward looking statements involve known and unknown risks and
uncertainties.
