MISSISSAUGA, ON, July 8 /CNW/ - Nuvo Research Inc. (TSX: NRI), a Canadian
drug development company focused on the research and development of drug
products delivered to and through the skin using its topical and transdermal
drug delivery technologies, and Paladin Labs Inc. (TSX: PLB), a leading
Canadian specialty pharmaceutical company, today announced modifications to
their existing licensing arrangements for Pennsaid and its follow-on product,
Paladin's wholly owned subsidiary, Squire Pharmaceuticals Inc., has made
a $2,500,000 payment to Nuvo in lieu of future payments relating to Canadian
sales of Pennsaid accruing prior to January 1, 2011. In addition, Squire will
pay Nuvo a royalty on future Canadian sales of Pennsaid occurring after
January 1, 2011.
Squire has also invested $2,000,000 in Nuvo by way of a two-year
convertible debenture. The new debenture bears interest at 8% per annum and is
convertible into Nuvo common shares at a price of $0.1380. The conversion
price is based on Nuvo's volume weighted average trading price on the TSX for
the five-day trading period ending July 4, 2008.
The existing Canadian Pennsaid Plus license between Nuvo and Squire has
been amended to grant Squire the right to market, distribute and sell Pennsaid
Plus in South Africa and Israel and, if certain conditions are met, Central
and South America. Nuvo will receive royalties in respect of any sales of
Pennsaid Plus by Squire in these additional territories. Pennsaid Plus is an
improved gel version of Pennsaid that requires less frequent dosing. Patent
applications are pending. Pennsaid Plus has not yet been approved by Health
Canada or the U.S. Food and Drug Administration (FDA).
"These amended arrangements provide us with additional cash that extends
our financial runway beyond mid 2009 when we expect to receive FDA approval of
Pennsaid," said John London, Nuvo's Vice Chairman. "We continue to complete
the non-clinical studies to respond to the FDA's December, 2006 Approvable
Letter, and have started to prepare our Pennsaid resubmission, which we expect
to file with the FDA in early 2009. This would lead to an expected response
from the FDA in the third quarter of 2009. The funds will also allow us to
continue to develop our early stage transdermal pipeline."
"Pennsaid continues to be one of our most important products," said
Jonathan Goodman, President and CEO of Paladin. "This transaction is an
effective use of our existing cash and assists Nuvo towards completing its
development of Pennsaid Plus. Consistent with our strategy of growing
internationally, we have secured the rights to Pennsaid Plus for Israel, South
Africa and, under certain conditions, Central and South America."
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 the research and development of drug products
delivered to and through the skin using its topical and transdermal drug
delivery technologies. Nuvo's lead product is Pennsaid(R), 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 topical and transdermal products targeting a variety of
Nuvo Research Inc. is a publicly traded, Canadian pharmaceutical company
headquartered in Mississauga, Ontario, with manufacturing facilities in
Varennes, Québec and Wanzleben, Germany and a research and development Center
in San Diego California. For more information, please visit
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 Companies
consider 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 Companies 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
Companies' Annual Information Forms for the year ended December 31, 2007. The
Companies disclaim 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 Companies' ongoing quarterly filings, annual reports and Annual
Information Forms and other filings found on SEDAR at www.sedar.com.
For further information:
For further information: about Paladin, please contact: Samira Sakhia,
Chief Financial Officer, Paladin Labs Inc., Tel: (514) 340-5067, email:
email@example.com; For more information about Nuvo, please contact:
Investor Relations, Adam Peeler, Equicom Group Inc., Tel: (416) 815-0700 x225,