Paladin Labs Inc. (CC:PLB) Announces the Closing of its Partnership for the Commercialization of Voclosporin
Paladin Labs Inc., a leading Canadian specialty pharmaceutical company, today announced the closing of its strategic partnership with Isotechnika Pharma Inc. (TSX: ISA) for the commercialization of voclosporin, Isotechnika's next-generation calcineurin inhibitor, in Canada, Mexico, Central & South America, Israel and South Africa.
"Following successful Phase III results for voclosporin in psoriasis, we look forward to working with Isotechnika Pharma on the preparation and filing of a dossier for Canadian regulatory approval of voclosporin. In addition, as major shareholders in Isotechnika Pharma, we are very excited about the company's future," stated Jonathan Ross Goodman, President & CEO of Paladin Labs Inc.
"This agreement with Paladin Labs improves our capital base and brings on a well-regarded commercialization partner for important pharmaceutical markets," said Dr. Foster, President & CEO of Isotechnika. "We will continue our efforts to secure a commercialization deal for voclosporin in the key markets of the U.S., Europe, and Asia, and we will work together with Paladin to identify and acquire additional late-stage assets to further broaden the pipelines of both companies."
Full details of this transaction were detailed in the May 7, 2009 press release and subsequent public filings of Isotechnika Inc. Under this partnership, Paladin paid $7 million cash to acquire 100% of Isotechnika Inc., 100% of Isodiagnostika Inc., 19% of the shares of Isotechnika Pharma Inc. (being 24,921,313 shares of Isotechnika Pharma) and has committed R&D funding of $4.35 million to Isotechnika Pharma over the next 12 months to further develop voclosporin. As a result of the transaction, Isotechnika Inc. is a wholly-owned subsidiary of Paladin. Paladin acquired the shares of Isotechnika Pharma Inc. in connection with the transaction and may trade in the securities of Isotechnika Pharma Inc. from time to time for investment purposes and/or based on market conditions or other considerations.
In addition, as a result of this transaction Paladin's non-capital losses and investment tax credits available to offset future taxable income has increased by a minimum of $100 million.
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on 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 Company's web site at www.paladinlabs.com.
This press release may contain forward-looking statements and predictions. 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 Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiary, 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 report as well as in the Company's Annual Information Form for the year ended December 31, 2008. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com
Contacts: Paladin Labs Inc. Samira Sakhia Chief Financial Officer 514-669-5367 514-344-4675 (FAX) [email protected] www.paladinlabs.com