Isotechnika Pharma announces sale of Isodiagnostika to Paladin Labs
Trades on Toronto Stock Exchange - (TSX: ISA)
EDMONTON, Feb. 18 /CNW/ - Isotechnika Pharma Inc. (TSX: ISA) today announced that its wholly owned subsidiary, Isotechnika Labs, has amended its agreement with Paladin Labs Inc. concerning its remaining stake in the revenue stream from the Isodiagnostika business sold to Paladin on June 18, 2009. Under the agreement, Isotechnika Labs was entitled to receive a revenue stream equivalent to 88 percent of the net profits of Isodiagnostika through to June 18 2016. This amendment results in a one time up front payment of $1.65 million with an additional amount up to $350,000 payable by January 31, 2011, based on Isodiagnostika sales in 2010.
"This amendment to the terms of our earlier agreement allows Isotechnika Pharma to continue its focus on the development of our voclosporin programs for transplant and psoriasis, as well as our NICAM portfolio project," said Dr. Robert Foster, President and CEO of Isotechnika Pharma. "These programs will continue to drive the value of our company and this amendment with Paladin is a great source of immediate non-dilutive working capital."
About Isotechnika Pharma
Edmonton-based Isotechnika Pharma Inc. is a biopharmaceutical company focused on the discovery and development of novel immunosuppressive 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 exceed $4 billion annually in sales for calcineurin inhibitors such as voclosporin by 2011.
Voclosporin, Isotechnika Pharma's lead drug candidate, is a next generation calcineurin inhibitor. It has completed a Phase 2b study for the prevention of kidney rejection following transplantation and a Phase 3 European/Canadian trial for the treatment of moderate to severe psoriasis. Our partner Lux Biosciences, has filed dossiers for approval of voclosporin in the U.S. and in Europe for the treatment of non-infectious uveitis. In the U.S., Lux has been granted Fast Track designation. Lux Biosciences has also conducted a Phase 1 trial using their proprietary voclosporin ophthalmic solution (LX214) as a candidate for dry eye syndrome.
This News Release contains forward-looking statements which may not be based on historical fact. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the Company's belief as to the potential of its products, its ability to protect its intellectual property rights, securing and maintaining corporate alliances and partnerships, the need for additional capital and the effect of capital market conditions and other factors on capital availability, the ability to economically manufacture its products, the potential of its products, the success and timely completion of clinical studies and trials, and the Company's and its partners' ability to successfully obtain regulatory approvals and commercialize voclosporin. Investors should consult the Company's quarterly and annual filings for additional information on risks and uncertainties relating to the forward-looking statements. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements.For further information: Dr. Robert Foster, President & CEO, Isotechnika Pharma Inc., (780) 487-1600 (247), (780) 484-4105 (fax), email@example.com; Dennis Bourgeault, Chief Financial Officer, Isotechnika Pharma Inc., (780) 487-1600 (226), (780) 484-4105 (fax), firstname.lastname@example.org