ISOTECHNIKA ANNOUNCES SHAREHOLDER APPROVAL OF ILJIN INVESTMENT AND NEW BOARD APPOINTMENTS
Isotechnika's CEO, Robert Foster commented, "We are very pleased to have this strategic investment from ILJIN Life Science Co., Ltd, which enables us to further the development of voclosporin into a Phase 3 clinical trial, an opportunity which very few companies are fortunate to enjoy. I look forward to working with the management team and new board members to make the most of this opportunity for the benefit of our shareholders, our company, and the patients we aim to help."
EDMONTON, Dec. 16 /CNW/ - Isotechnika Pharma Inc. (TSX:ISA) is pleased to announce the results of the Special Meeting of Shareholders held on December 15, 2010.
Approval of ILJIN Investment
At the Special Meeting, shareholders overwhelmingly (97%) approved the previously announced Development, Distribution and License Agreement (the "DDL") with ILJIN Life Science Co., Ltd. ("ILJIN"). This approval will allow Isotechnika to further the clinical and commercial development of voclosporin for use in transplant indications, and involves the issuance and sale of 90,700,000 Shares of the Company to ILJIN, in three tranches. Under the DDL, ILJIN will fund a single Phase 3 clinical trial in kidney transplantation through a combination of a license fee of US$5 million and the purchase of Common Shares from treasury. In return, Isotechnika has granted ILJIN an exclusive license to voclosporin for transplant and autoimmune indications for the US and other regions outside of Canada, Israel, South Africa, Europe, China, Taiwan and Hong Kong. Isotechnika retains the rights to voclosporin in Europe for future development and commercialization.
ILJIN Life Science Co., Ltd. is a member company of ILJIN Group, a global conglomerate based in Seoul, South Korea, which last year earned US$2 Billion in revenue. The DDL becomes effective on the date on which all conditions and approvals required under the DDL (including the final approval of the Toronto Stock Exchange) have been satisfied.
Approval of New Board Members
Shareholders elected three new members to Isotechnika's board of directors:
- Chin-Kyu Huh, Chairman, ILJIN Group,
- Daniel S. Park, Executive Vice President, ILJIN Group, and
- Prakash Gowd, President, Gowdra Capital, a life sciences consulting firm.
A resolution was passed allowing an amendment of the Company's by-laws such that only one quarter of the Company's board of directors are required to be resident Canadians and meetings of the board no longer require that at least a majority of resident Canadian directors be present to transact business.
About Isotechnika Pharma Inc.
Isotechnika Pharma Inc. is a biopharmaceutical company focused on the discovery and development of immunomodulating therapeutics that are designed to offer advantages over other currently available treatments. There is a significant unmet medical need in the treatment of both solid organ transplantation and autoimmune disease. It is estimated that the market potential will be $3 billion annually in sales for calcineurin inhibitors such as voclosporin in 2010.
This news release contains forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but caution that these assumptions regarding the future events, many of which are beyond the control of the Company and their subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual reports, as well as in the Company's Annual Information Form for the year ended December 31, 2009. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether a result of new information, future events, or except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly filings, annual report and Annual Information Form and other filings found on SEDAR at www.sedar.com.
For further information:
|Dr. Robert Foster |
President & CEO
|Mr. Dennis Bourgeault|
Chief Financial Officer