VANCOUVER, March 28, 2013 /CNW/ - Welichem Biotech Inc. ("Welichem" or the "Company") (TSXV:WBI) announced today that it has entered into an asset purchase
agreement (the "APA") to purchase the exclusive development and commercialization rights
(the "Rights") to the novel anti-inflammatory agent, WBI-1001, in China, Taiwan,
Macao and Hong Kong from Shenzhen Celestial Pharmaceuticals Ltd. and
Beijing Wenfeng Tianji Pharmaceuticals Co., Ltd. (together, the "Vendors"). Upon entering into the APA, Welichem paid the sum of Cdn$10 million
(the "Signing Payment") to the Vendors, which sum has been held in escrow since the
previously disclosed closing of Welichem's sale to Stiefel, a GSK
company, of the exclusive development and commercialization rights to
WBI-1001 outside of China, Taiwan, Macao and Hong Kong, on July 31,
2012. Completion of the sale of the Rights under the APA remains
subject to certain third party and Chinese regulatory approvals,
including but not limited to Ministry of Health of the People's
Republic of China.
Pursuant to Wellichem's the purchase and sale agreement with Stiefel,
(the "Stiefel Agreement"), Stiefel also received a conditional right to acquire the exclusive
rights to develop and commercialize WBI-1001 in China, Taiwan, Macao
and Hong Kong at a future date, upon satisfaction of certain
conditions, including the acquisition of such Rights by Welichem, and
upon making an additional payment to Welichem of Cdn$15 million.
The transactions contemplated under the Stiefel Agreement, including the
purchase of the Rights from the Vendors and the payment of the Signing
Payment, was previously approved by the shareholders of Welichem at a
special meeting held on July 5, 2012.
About WBI-1001: WBI-1001 is a novel, non-steroidal, topical anti-inflammatory new
chemical entity (NCE) agent that has demonstrated efficacy and safety
in Ph1 and Ph2 clinical trials for the treatment of mild to moderate
psoriasis and moderate to severe atopic dermatitis (AD) for up to 12
weeks as a single therapy.
About Welichem Biotech Inc.
Welichem Biotech Inc. is a publicly-traded biotechnology company
developing therapeutic drugs in the fields of autoimmune diseases and
cancers. For a more complete business and financial profile of the
Company, interested parties are encouraged to visit the Company's
website at www.welichem.com.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this news
release. This press release contains forward-looking statements that
include our belief as to the potential of our products. Certain risks
and uncertainties such as our ability to successfully commercialize the
products could cause the Company's actual results to differ materially
from those in the forward-looking statements.
SOURCE: Welichem Biotech Inc.
For further information:
Liren Tang, President and Chief Executive Officer. Tel.: (604) 432-1703, Email: email@example.com