Healthcare Industry News: protein therapeutics
News Release - November 19, 2007
Inflazyme Pharmaceuticals Announces Closing of Transaction With BiolipoxVANCOUVER, BRITISH COLUMBIA--(Healthcare Sales & Marketing Network)--Nov 19, 2007 -- Inflazyme Pharmaceuticals Ltd. (Toronto:IZP.TO ) announced today that it has completed its previously announced sale of substantially all of its research and development assets to Biolipox AB. The transaction was approved at Inflazyme's AGM and Special Meeting of Shareholders on November 16, 2007. Of the votes cast, 98 per cent were in favor of the transaction.
Inflazyme has received $4 million in cash for the sale of the PDE inhibitors, the LSAIDs(TM) and the protein therapeutics technology. In addition, Inflazyme may receive up to $7 million in potential milestones plus royalty payments consisting of the following: (i) $1.5 million upon a decision to enter a Phase 2b clinical study with a PDE inhibitor; (ii) $2.5 million upon a decision to initiate a Phase 3 study with a PDE inhibitor; (iii) $3 million upon a decision to begin a Phase 3 clinical study with an LSAID(TM); and (iv) a modest royalty of 1.25% on net sales of the first PDE inhibitor commercialized. Inflazyme may also receive up to 35% of the proceeds from the subsequent sale of the protein therapeutics technology if these assets are sold within 12 months of this transaction closing. There can be no assurance that the milestones, royalty, and payments related to the sale of the protein technology will be achieved.
"With the acquisition of these interesting development programs from Inflazyme, we strengthen our position within respiratory and inflammatory diseases. Inflazyme's novel technologies have exciting potential which we believe will fit nicely in our R&D portfolio," commented Torbjorn Bjerke, President and CEO of Biolipox.
The acquisition of Biolipox by Orexo AB, a public Swedish pharmaceutical company (OMX Nordic List, Mid Cap:ORX), was recently approved by the Orexo shareholders. The purpose of this transaction was stated to create a specialty pharmaceutical company with a broad product pipeline and an established sales channel. Dr. Torbjorn Bjerke, the former President and CEO of Biolipox, will be appointed as the President and CEO of the merged entity which will retain the name Orexo. That transaction is expected to close later this month.
NEX Trading Exchange for IZP Shares
As a result of the transaction, Inflazyme has applied to transition trading from the TSX to the NEX. The NEX is a new and separate board of the TSX Venture Exchange. It provides a different trading forum for listed companies that are not carrying on an active business but are seeking to complete a merger transaction, as is the case for Inflazyme. If accepted to the NEX, Inflazyme would be afforded the opportunity to evaluate a merger transaction around the remaining assets within the Company without losing liquidity for shareholders in the interim. Any proposed transaction recommended by the Board would likely be subject to a shareholder vote.
Further information on the Company may be obtained from its website at www.inflazyme.com.
This news release contains certain "forward-looking statements" and "forward-looking information" which may include but is not limited to statements in respect of our future financial position or operations. Words like "believe", "intend", "may", "expect", "anticipate", "plan", "should" and other similar expressions are forward-looking statements that involve a number of risks and uncertainties. By their nature, forward-looking statements involve numerous factors, assumptions and estimates, some but not all of the factors that could cause actual results to differ materially from those projected in our forward-looking statements include among others: risks associated with the completion of clinical trials and obtaining regulatory approval to market our products, market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain and develop partnership opportunities; and other risk factors identified from time to time in the Company's regulatory filings. For a further description of the principal risks affecting the Company, see our regulatory filings. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements.
Source: Inflazyme Pharmaceuticals
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