Encysive Pharmaceuticals has signed a new licensing and related agreements with Revotar Biopharmaceuticals AG, the Company's majority-owned German subsidiary, regarding bimosiamose and certain follow-on compounds.

According to a company release, Revotar's other stockholders will contribute additional capital to Revotar to fund its ongoing operations, thereby reducing Encysive's ownership to approximately 14 per cent. Encysive will license the worldwide rights to bimosiamose and receive substantial royalties on future revenues from the commercialization or licensing of this compound and certain follow-on compounds by Revotar. The transaction will become effective upon completion of the contribution of additional capital by Revotar's other stockholders. Revotar's other stockholders may also subsequently purchase Encysive's remaining stock ownership in Revotar for a nominal amount.

"Following funding by Revotar stockholders, we will license to Revotar all rights to bimosiamose and will participate in any future revenues from the product," said Bruce D. Given, president and CEO of Encysive Pharmaceuticals. "This strategic transaction will allow Encysive to focus our efforts on Thelin and the development of our proprietary research products, while allowing Revotar more flexibility in the worldwide development and commercialization of bimosiamose," he added.