Accentia may seek strategic options if no additional funds are found

By Angela McDaniels

Seattle, Aug. 14 - Accentia Biopharmaceuticals, Inc. said that if it is unable to restructure some of its debt and raise additional funds, it may consider strategic financing options such as the disposal of assets or business units that are nonessential to the development and commercialization of SinuNase, the curtailment of commercialization efforts or the reduction or elimination of research or development programs.

The company is considering private equity offerings, debt financings, corporate collaboration licensing transactions or disposition of assets, products or operations, according to its 10-Q report filed with the Securities and Exchange Commission.

The company said it is "confident" it will raise the capital needed to fund its operations, but noted that it has no commitments in place for any debt or equity financing and could make no assurances that such financing will be available.

At June 30, the company had $5.3 million in cash, of which $5.2 million is held by subsidiary Biovest International Inc.; $3.3 million available under its lines of credit and $7.1 million of demand notes receivable from Biovest.

Biovest is seeking additional financing in the form of equity offerings, debt financing, corporate collaborations, licensing transactions or other forms of financing, according to the filing. Accentia predicted that if Biovest obtains such financing, it will repay some or all of the outstanding demand notes and begin funding its operations without additional inter-company loans from Accentia.

Accentia is a Tampa, Fla., biopharmaceutical company that develops and commercializes late-stage clinical products for the treatment of respiratory diseases and cancer.

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