Toronto Stock Exchange Symbol: AKL
MONTREAL, Dec. 20 /CNW Telbec/ - Akela Pharma Inc. (TSX: "AKL"), a drug
development company focused on developing therapies for the inhalation and
pain markets, today announced that due to unfavorable market conditions,
particularly in the small and micro-cap sector, it has decided to abandon its
US public offering initiative. The Company is currently contemplating other
financing options. It is still the Company's intention to list its shares on a
Akela also announces it has already started to implement significant cost
reduction measures to bring its cash burn rate in line with its current and
expected financial resources. The Company will primarily focus its R&D
activities on its core programs. PharmaForm, the Company's drug formulation
and manufacturing subsidiary located in Austin, Texas, is currently
experiencing substantial growth, and is expected to contribute towards the
Company's operating cash flow in the near term.
"Although the latest unfavorable market conditions did not allow us to
complete our US public offering as originally planned, we remain extremely
confident about the appeal and commercial potential of our products and
platforms. We have aligned our corporate focus with our financial resources to
ensure optimal returns on our core activities" said Dr Halvor Jaeger, CEO of
Akela Pharma Inc.
About Akela Pharma Inc.
Akela Pharma is an integrated drug development company focused on
developing therapies for the growing multi-billion dollar inhalation and pain
markets. Its lead product, for the treatment of breakthrough cancer pain, is a
fast-acting Fentanyl formulation delivered using the Company's TAIFUN(R) dry
powder inhaler platform. Its pipeline also includes therapeutics for asthma,
COPD, growth hormone deficiencies and controlled substance abuse deterrent
Akela's common shares trade on The Toronto Stock Exchange ("TSX") under
the symbol "AKL" with 11.7 million shares outstanding.
This news release contains certain forward-looking statements that
reflect the current views and/or expectations of Akela Pharma Inc. with
respect to its performance, business and future events. Such statements are
subject to a number of risks, uncertainties and assumptions. Actual results
and events may vary significantly.
For further information:
For further information: visit Akela's website at www.akelapharma.com,
or contact: Frédéric Dumais, Vice-President, Investor Relations, (514)
315-3330 ext. 106, Fax: (514) 315-3325