- Regains 100% ownership of profits from future sales of plasminogen for congenital deficiency
- Hematech continues to hold Taiwanese rights to PPPS™ as CMO supplier to ProMetic
LAVAL, QC, Jan. 5, 2017 /CNW Telbec/ - ProMetic Life Sciences Inc. (TSX: PLI) (OTCQX: PFSCF), ("ProMetic" or the "Corporation") announced today that it has amended its licensing agreement originally entered into with Hematech BioTherapeutics Inc., ("Hematech") in May 2012 (the "License Agreement"). ProMetic has reacquired the rights initially granted to Hematech in the License Agreement, to a 50% share of the worldwide profits related to plasminogen congenital deficiency sales (the "Rights").
The parties had originally entered into two separate agreements: the Licensing Agreement and a further agreement which provided Hematech with the manufacturing rights to supply ProMetic with additional plasma-derived biopharmaceuticals on a contract manufacturing basis (the "CMO relationship"). Since 2012, ProMetic has secured the required cGMP manufacturing capacity to allow for the achievement of its ambitious corporate goals. As a consequence of the positive steps taken by ProMetic to secure such capacity, the pace at which the Taiwanese manufacturing capacity needs to be brought on line has become less critical. However, this CMO relationship between ProMetic and Hematech is maintained for future manufacturing capacity expansion and the parties will continue to work together on this project.
"The License Agreement needed readjustment as the timing of investments and milestone payments related to the plasminogen development program and those relating to the CMO relationship became unreasonably out of sync", stated Mr. Pierre Laurin, President and Chief Executive Officer of ProMetic. "It became apparent to both parties that in order to settle these discrepancies and re-align the relationship with a focus on the CMO relationship, it would be most appropriate for ProMetic to regain full ownership of the future profits from plasminogen congenital deficiency sales". Mr. Laurin added, "We are very pleased to have reacquired these rights. Given our strong focus on plasminogen, we believe this will be very advantageous to our shareholders in the short and long-term".
Bruce Pritchard, ProMetic's Chief Operating Officer, commented: "This updated agreement with Hematech will also help both parties adjust for the optimal timing of any external additional CMO capacity required by ProMetic when such capacity can be linked to the expansion of plasminogen clinical indications and regulatory approval of additional plasma-derived therapeutic products".
Consideration for acquiring the Rights included the issuance of 1,683,040 shares of ProMetic to Hematech, the payment of a mid-single digit royalty by ProMetic to Hematech on Prometic's sales of plasminogen for congenital deficiency, adjustments to mutual obligations of the parties as well as other non-cash considerations to the License Agreement.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (www.prometic.com) is a long established biopharmaceutical company with globally recognized expertise in bioseparations, plasma-derived therapeutics and small-molecule drug development. ProMetic offers its state of the art technologies for large-scale purification of biologics, drug development, proteomics and the elimination of pathogens to a growing base of industry leaders and uses its own affinity technology that provides for highly efficient extraction and purification of therapeutic proteins from human plasma in order to develop best-in-class therapeutics and orphan drugs. ProMetic is also active in developing its own novel small-molecule therapeutic products targeting unmet medical needs in the field of fibrosis, anemia, neutropenia, cancer and autoimmune diseases/inflammation as well as certain nephropathies. Headquartered in Laval (Canada), ProMetic has R&D facilities in the UK, the U.S. and Canada, manufacturing facilities in the UK and commercial activities in the U.S., Canada, Europe, Russia, Asia and Australia.
Forward Looking Statements
This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations in ProMetic's Annual Information Form for the year ended December 31, 2015, under the heading "Risk and Uncertainties related to ProMetic's business". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless indicated otherwise.
SOURCE ProMetic Life Sciences Inc.
For further information: Pierre Laurin, President and CEO, ProMetic Life Sciences Inc., [email protected], +1.450.781.0115; Frédéric Dumais, Senior Director, Communications and Investor Relations, ProMetic Life Sciences Inc., [email protected], +1.450.781.0115