Hexal co-founders continue biotech buy up

The co-founders of German generic manufacturer Hexal are mulling further purchases in the biotech industry after buying a stake in German-headquartered biotech MediGene, according to local media reports.

According to Thomas and Andreas Struengmann, who sold Hexal to Novartis two years ago, the EUR 15.6m (USD 21.7m) investment in Medigene will lift the value of their holdings in the biotechnology industry to a ìsignificantî amount.

The Struengmanns already hold stakes in German biotechnology companies including 4SC and Ganymed Pharmaceuticals, which is developing monoclonal antibody therapeutics to fight solid cancer tumours.

On 10 September, MediGene sold a 9.1 per cent stake out of newly created shares to the Santo Holding, which is controlled by the Struengmanns. MediGene will receive the investment from Santo Holdingís private placement.

The transaction was resolved with the approval of the supervisory board at a price of EUR 5.05 per share, with MediGene increasing registered share capital from EUR 30.8m to EUR 33.9m.

From 31 December 2007, Thomas Struengmann will succeed Dr Manfred Scholz, who has retired from MediGene¥s supervisory board due to medical reasons.