SHARON Calif. company buys Infectech, plans products from patents

Infectech's chief executive says he and his staff will remain in Sharon.
THE VINDICATOR, YOUNGSTOWN, OHIO
By DON SHILLING
VINDICATOR BUSINESS EDITOR
SHARON, Pa. -- A local biotechnology company is being acquired by a California company that intends to create products out of its scientific patents.
Infectech Corp. will become a subsidiary of Nutra Pharma Corp. of Beverly Hills, Calif., with its four-person staff remaining in Sharon, said Dr. Michael Felder, Infectech chief executive.
Nutra Pharma, a 3-year-old company that has been acquiring biotech and biopharmaceutical companies, said Tuesday it has signed an agreement to acquire all of Infectech's stock and expects the deal to close by mid-October. It will exchange one of its shares for every two Infectech shares.
Shares of Infectech stock, which began trading in 2000 at $2 a share, have been trading at about 30 cents. Nutra Pharma shares have been trading at about 80 cents.
Felder said Infectech, which has 32 patents, has been focused on developing its intellectual property, but the backing of Nutra Pharma will help it develop more commercial products.
Infectech has created diagnostic kits that are used to rapidly identify certain disease-causing pathogens, such as bacteria that causes tuberculosis and an infection common to AIDS patients. Other Infectech technology could be used for rapid identification of bacteria that could be used in bioterrorism, Felder said.
He is particularly excited about a new patent for a method that attempts to stop cancer cells from spreading by working with the DNA of a cell so that the cell kills itself.
It also has technology for using naturally occurring microorganisms to degrade hazardous substances that contaminate soil and water.
Recent struggles
Felder said Infectech, with offices on Stambaugh Avenue, has struggled recently with a lack of capital and an internal corporate struggle.
Dr. Robert Ollar of Milford, Pa., former company chairman, tried to force the company into involuntary bankruptcy and filed a lawsuit to force the company to have a shareholders' meeting. Infectech said both cases have been dismissed.
Felder said the company now is ready to move on to the next phase of its development, which is marketing products more aggressively.
He said he and Nutra Pharma officials will develop a business plan, which will include partnering with a major pharmaceutical firm.
Rik Deltech, Nutra Pharma chief executive, said he is looking forward to developing new product lines with Infectech's patents and also is seeking to acquire other biotech companies.
Felder said he expects the number of employees in Sharon to increase as the company grows, but those issues will be decided by Nutra Pharma. Felder said he intends to remain in this area because he and his family live in Hermitage and he enjoys the quality of life here.
shilling@vindy.com