SEMBIOSYS ANNOUNCES IT IS PURSUING STRATEGIC ALTERNATIVES
TSX symbol: SBS
CALGARY, Sept. 24 /CNW/ - SemBioSys Genetics Inc. (TSX:SBS), a development stage biotechnology company that utilizes its patented plant seed, oil body, expression technology platforms to develop Biosimilar drug candidates and high value proteins, today announced it is taking immediate steps in an effort to provide additional time to execute on one or more strategic initiatives.
The Company is working on a number of strategic options potentially available to it in coming weeks, including a corporate sale or merger, an accelerated strategic partnering transaction for either insulin or Apo, an asset sale, a significant restructuring and recapitalization or an orderly wind down of the Company's business. At the current time, the Company believes it has sufficient assets to satisfy its obligations as they come due, but the Company is unable to continue its existing business at current levels or to take on new commitments without additional financing. In an effort to stretch its available cash runway, the Company this morning provided working notice of termination to all affected employees. If successful in its strategic efforts, the Company will make an effort to bring back as many of its affected employees as practical.
The Company is undertaking these tough and painful measures in an effort to preserve its business, however, no assurances can be made that it will be successful. There is no assurance that any of the strategic alternatives, if successful, will provide any return to the shareholders.
There are a number of interested parties in negotiations and diligence reviews with respect to partnering both insulin and Apo AI(Milano). SemBioSys believes it makes a potentially attractive M&A target to some of these fore mentioned parties. Additionally, it believes its product candidates may be attractive assets for purchase by one or more of these parties. The Company is also in the midst of a previously announced fund raise, for which there has been interest expressed, however the Company has not yet been successful in closing this potential round of funding.
"The Board of Directors and I are grateful to our talented and loyal staff, as well as SemBioSys' loyal and longstanding shareholders at this difficult time. I want to assure you that my fellow colleagues and I are working day and night to create the best possible outcome for the Company and all of its stakeholders," stated James Szarko, President and CEO.
Calgary, Alberta-based SemBioSys is a development stage biotechnology Company that utilizes its patented plant seed, oil body, expression technology platforms to develop Biosimilar drug candidates and high value proteins. SemBioSys' seed-based protein expression system can enable exceptionally low cost of production with unprecedented scalability and reliability. SemBioSys is focusing the platform selectivity to develop biosimilar product candidates with tremendous commercial value. The Company's current pharmaceutical development programs include insulin (SBS-1000, regulated as a biosimilar in Europe) and Apo AI(Milano), a new chemical entity and next-generation cardiovascular therapy with block buster revenue potential if it reaches market for treatment of Athlerosclerosis. SemBioSys' Apo AI(Milano) is a des-1,2- variant of Apo AI(Milano) as previously described in sciemtific literature. SemBioSys is listed on the Toronto Stock Exchange under the ticker SBS. More information is available at www.sembiosys.com.
This press release contains certain forward-looking statements, including, without limitation, statements containing the words "believe", "may", "plan", "will", "estimate", "continue", "anticipate", "intend", "expect" and other similar expressions which constitute "forward-looking information" within the meaning of applicable securities laws. Forward-looking statements reflect the Company's current expectation and assumptions, and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated. These forward-looking statements involve risks and uncertainties including, but not limited to, changing market conditions and market size, the acceptance of an IND by the FDA in respect of clinical studies, the submission of a CTA to the appropriate European authorities, the successful initiation and timely and successful completion of clinical studies, the fact that Apo AI(Milano) is currently a development stage drug, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process and other risks detailed from time-to-time in the Company's ongoing filings with the Canadian securities regulatory authorities which filings can be found at www.sedar.com. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements either as a result of new information, future events or otherwise, except as required by applicable Canadian securities laws.