Healthcare Industry News: Transdermal
News Release - January 17, 2006
Nuvo Sells Additional Canadian Pennsaid'R' Rights to Paladin SubsidiaryMONTREAL--(HSMN NewsFeed)--Jan. 17, 2006--Paladin Labs Inc. (TSX:PLB ), a leading Canadian specialty pharmaceutical company, and Nuvo Research Inc. (TSX:NRI ) today jointly announced that they have entered into an agreement which expands their relationship with respect to the sale and marketing of Pennsaid® in Canada. In August 2005, Squire Pharmaceuticals Inc. (formerly Dimethaid Health Care Ltd.) was acquired by Paladin from Nuvo. The terms of this expanded agreement include Squire making an up-front payment, providing on-going royalties on the sale of Pennsaid® and making an investment of $500,000 in Nuvo through a three-year debenture convertible into Nuvo shares at a conversion price of $0.456, which is based on the ten-day average closing price.
"We are pleased to broaden our relationship with Paladin, a company with a proven ability to successfully build leading brands in Canada," said John London, Nuvo's Vice Chairman. "This transaction provides non-dilutive funding for our operations, including our drug development program, to mid-2006 when we plan to submit our amended New Drug Application (NDA) for Pennsaid® to the U.S. Food and Drug Administration (FDA)."
"Clinical data indicates that Pennsaid® is as effective as oral diclofenac, considered the "gold standard" treatment for osteoarthritis, but with significantly fewer adverse events. Providing safer and effective alternatives like Pennsaid® to some of the four million Canadians living with osteoarthritis, furthers Paladin's goal of improving the lives of Canadians," said Jonathan Ross Goodman, President and CEO of Paladin. "We are excited that we have been able to expand our rights to Pennsaid® and our relationship with Nuvo."
Pennsaid® is a topical non-steroidal anti-inflammatory (NSAID) used for the treatment of osteoarthritis and is currently approved for sale in Canada and several European countries. Pennsaid® allows the diclofenac solution to be delivered to a specific site via the surface of the skin and thus avoids complications associated with systemic delivery. According to published clinical trials, Pennsaid® is as effective as the maximum daily dose of comparable oral medication at relieving pain and stiffness associated with osteoarthritis of the knee, as well as improving overall well-being. There is currently no topical NSAID product approved in the U.S., which represents a $6.5 billion osteoarthritis pain relief market.
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a leading specialty pharmaceutical company focused on developing, acquiring or in-licensing innovative pharmaceutical products for the Canadian market. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Paladin web site at www.paladinlabs.com.
About Nuvo Research Inc.
Nuvo is focused on developing innovative site-specific therapeutics that are delivered topically using the Company's skin-penetrating technologies. Nuvo's lead product is Pennsaid®, a topical non-steroidal anti-inflammatory (NSAID) used for the treatment of osteoarthritis. Nuvo intends to leverage its skin-penetrating technologies to create a portfolio of Transdermal products targeting a variety of indications.
Nuvo Research Inc. is a publicly traded, Canadian pharmaceutical company headquartered in Markham, Ontario, with manufacturing facilities in Varennes, Quebec and Wanzleben, Germany. For more information, please visit www.nuvoresearch.com.
This news release may contain forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval and other factors that are discussed in the Management Discussion and Analysis published in the Company's annual report.
Source: Paladin Labs
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