Global Agro, Inc. Announces Agreement to MergeWith Xyris Corporation to Form Akkadix
ENCINITAS, Calif., April 20 /PRNewswire/ -- Global Agro, Inc., a plant science company based in Encinitas, California announced today that is has signed a letter of intent to merge with Xyris Corporation, the majority-owned agricultural biotechnology affiliate of Axys Pharmaceuticals, Inc. (Nasdaq: AXPH). Global Agro is dedicated to the research and development of plant genetics and the discovery, expression and regulation of genes in selected agricultural crops. This all-stock transaction will result in the creation of a new agricultural biotech company, to be named Akkadix Corporation. The proposed merger has been approved by the Board of Directors of both companies and is expected to close within the next 60 days.
Gary H. Richardson, co-founder and chief executive officer of Global Agro and president designate of Akkadix, stated, "We recognized the value in combining the broad technology base of Xyris with the assets of Global Agro. The proprietary genes that we licensed from the Salk Institute, when coupled with our germplasm and Xyris' technology, enables Akkadix to generate products and realize revenues at an earlier stage than would normally be expected."
"This combination integrates the genomics, structural biology, bioinformatics, combinatorial chemistry and high throughput screening of Xyris, with the proprietary plant genes and germplasm of Global Agro, to accelerate Akkadix's development and programs in gene discovery, gene characterization and nematicides," said Jerry Caulder, Xyris' chairman and chief executive officer and CEO designate of Akkadix. "This transaction accelerates the strategic plan we put into place with the formation of Xyris last year and it furthers our ability to attract both partners and collaborators in applying our technology platform to new opportunities in the agricultural biotechnology market."
Global Agro is contributing to Akkadix research and technology licensing agreements with The Salk Institute and the University of Edinburgh, in addition to collaborations with AgriBiotech, Inc. and Forage Genetics, Inc., a subsidiary of Land O' Lakes Inc. of Wisconsin. Xyris Corporation is providing Akkadix with research and technology licensing agreements from Axys Pharmaceuticals and access to capital through relationships with strategic investors. Akkadix's technology platform and capabilities are unique in the industry. The company will be well positioned to apply newer life science technologies to the development of new plants and their uses. These activities will include the discovery of new genes and gene functions, the application of these traits to make plants more resistant to diseases and pests, and the use of plants as production vehicles to make unique products.
Global Agro, Inc. was formed in February 1995 as an international technology resource organization focused on agricultural plant technology. Its principle activities are the development, licensing and management of proprietary plant genetics, biotechnology and discovery for agricultural applications around the world. Germplasm research collaborations are in place with over twenty-five companies located in key agricultural areas of the world. Global Agro's agreement with the Salk Institute for Biological Studies has given them commercialization and licensing rights to a variety of proprietary technologies to modulate fundamental physiological processes controlling selected crop productivity.
SOURCE Global Agro, Inc.
CO: Global Agro, Inc.; Xyris Corporation; Axys Pharmaceuticals, Inc.
ST: California
IN: AGR MTC
SU: TNM
04/20/99 20:11 EDT prnewswire.com
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