VANCOUVER, Oct. 10 /CNW/ - MIGENIX Inc. (TSX: MGI; OTC: MGIFF),
("MIGENIX" or the "Company") is providing an update regarding its corporate
Protecting important assets and rationalizing certain programs
MIGENIX remains committed to advancing the development and
commercialization of its greatest product opportunities. Omiganan 1% gel, also
known as Omigard(TM), for the prevention of catheter-related infections, is
now in the final stage of Phase III development, with study results
anticipated in the first quarter of calendar 2009. Upon successful completion
of various milestones in this program, the Company can receive development and
commercialization milestone payments and a double-digit royalty on net sales.
In order to conserve cash resources through the Omigard(TM) Phase III results,
MIGENIX intends to provide minimal development investment for its various
other programs, while at the same time increasing its out-licensing efforts to
further advance these programs and generate additional financial and
collaborative resources for MIGENIX.
Taking steps to restructure and stabilize MIGENIX operations
As part of its cost reduction program, management continues to explore,
evaluate and implement various cost cutting initiatives to reduce the
Company's cash burn rate. New cost cutting initiatives include:
- re-negotiation of management and non-management personnel employment
contracts, resulting in the planned departure of four managers at the
Vice President level and seven staff, representing a significant
reduction in the Company's current personnel. Each of the departing
Vice Presidents will remain available as consultants to MIGENIX
following the end of their employment with the Company. MIGENIX will
review and consider further personnel reductions in the future if it
deems necessary; and
- consolidation of MIGENIX's operations at its head office located in
Vancouver, British Columbia.
Management believes that these cost reduction measures, together with
other cost reduction measures being evaluated by management, will help manage
and bring MIGENIX's cash burn rate in line with its current and expected
Going forward, the senior management team of MIGENIX will consist of
Messrs. Bruce Schmidt (President and Chief Executive Officer), Art Ayres (Sr.
Vice President, Finance and Chief Financial Officer) and Robert Cory (Vice
President, Business Development).
Raising of additional capital
MIGENIX is focused on raising additional capital, including a previously
announced plan for a rights offering. Prior to conducting any financing,
management believed that it was necessary to implement the additional cost
reduction programs and program rationalization initiatives, as set out above.
Further information regarding any proposed financing will be provided by the
Company in a future communication.
MIGENIX is committed to advancing therapy, improving health, and
enriching life by developing and commercializing drugs primarily in the area
of infectious diseases. The Company's programs include drug candidates for:
the prevention of catheter-related infections (Phase III), the treatment of
dermatological diseases (end of Phase II), the treatment of chronic hepatitis
C infections (Phase II and preclinical), the treatment of serious gram
positive bacterial infections (preclinical) and the treatment of hepatitis B
infections (preclinical). MIGENIX is headquartered in Vancouver, British
Columbia, Canada. Additional information can be found at www.migenix.com.
This news release contains forward-looking statements within the meaning
of the United States Private Securities Litigation Reform Act of 1995, and
forward-looking information within the meaning of applicable securities laws
in Canada (collectively referred to as "forward-looking statements").
Statements, other than statements of historical fact, are forward-looking
statements. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both general and
specific, that contribute to the possibility that the predictions, forecasts,
projections and other matters contemplated by the forward-looking statements
will not occur.
Although our management believes that the expectations represented by
such forward-looking statements are reasonable, there is significant risk that
the forward-looking statements may not be achieved, and the underlying
assumptions thereto will not prove to be accurate. Forward-looking statements
in this news release include, but are not limited to, statements concerning
our expectations for: Cadence Pharmaceuticals having results of the
Omigard(TM) Phase III trial in the first quarter of calendar 2009; managing
and bringing our cash burn rate in line with our current and expected
financial resources; and raising additional capital, including a previously
announced plan for a rights offering.
With respect to the forward-looking statements contained in this news
release, we have made numerous assumptions regarding, among other things: the
adequacy of the Omigard(TM) Phase III trial design to generate data that are
deemed sufficient by regulatory authorities to support potential regulatory
filings, including an NDA, for Omigard(TM); our ability to complete a rights
offering; and future expense levels being within our current expectations.
Actual results or events could differ materially from the plans,
intentions and expectations expressed or implied in any forward-looking
statements, including the underlying assumptions thereto, as a result of
numerous risks, uncertainties and other factors including: dependence on
corporate collaborations; potential delays; uncertainties related to early
stage of technology and product development; uncertainties as to the
requirement that a drug be found to be safe and effective after extensive
clinical trials and the possibility that the results of such trials, if
completed, will not establish the safety or efficacy of our products; market
conditions for financings including a rights offering; uncertainties as to
future expense levels and the possibility of unanticipated costs or expenses
or cost overruns; the possibility that opportunities will arise that require
more cash than presently anticipated and other uncertainties related to
predictions of future cash requirements; and other risks and uncertainties
which may not be described herein. Certain of these factors and other factors
are described in detail in the Company's Annual Information Form and other
filings with the Canadian securities regulatory authorities and the U.S.
Securities & Exchange Commission.
Forward-looking statements are based on our current expectations and
MIGENIX assumes no obligations to update such information to reflect later
events or developments.
For further information:
For further information: Bruce Schmidt, president and chief executive
officer, at (604) 221-9666