SemBioSys announces substantial cost reductions to extend development runway
CALGARY, Oct. 20 /CNW/ - SemBioSys Genetics Inc. (TSX:SBS), a biotechnology company developing a portfolio of therapeutic proteins, today announced it has implemented a substantial cost reduction program to conserve existing cash resources in order to extend its development runway in response to the current challenging capital markets environment. The Company will focus its resources on the completion of the near-term development milestones for its insulin and Apo AI programs, that directly align with the company's partnering strategies for these two products. The company has reduced its headcount to 45 employees. This is a reduction in staff of more than 40 percent. In addition, the Company is curtailing expenditures on those activities that are not critical to the achievement of its partnering objectives.
"Our insulin and Apo AI development programs are approaching material near-term milestone events, which should enable us to partner these programs. The changes announced today will ensure our current cash resources and core competencies are focused on achieving these value-driving milestones," said Andrew Baum, president and chief executive officer of SemBioSys. "Separately, our subsidiary, Botaneco Specialty Ingredients Inc., has been financially and operationally independent of SemBioSys since June, consequent to a $4.0 million financing."
SemBioSys has made major progress in both its insulin and Apo AI programs. It has already completed the manufacture of the clinical grade safflower-produced insulin necessary to conduct its Phase I/II insulin trial, including a cGMP audit required by European authorities. In the U.S., the 30 day post-IND period was completed in August, with no objections raised by the FDA. The Company has also initiated in vivo plaque remodeling and regression studies at Cedars Sinai Hospital at UCLA with its safflower-derived Apo AI Milano. Results from these pivotal pre-clinical studies are expected in early 2009. Both the insulin and Apo AI Milano programs are currently the subject of substantial discussions with prospective partners.
About SemBioSys Genetics Inc.
Calgary, Alberta-based SemBioSys Genetics Inc. is a biotechnology company developing protein-based pharmaceuticals. The Company's lead pharmaceutical candidates, produced in the plant host safflower, are recombinant human insulin to serve the rapidly expanding global diabetes market and Apo AI Milano, a next generation cardiovascular drug. In addition to its pharmaceutical products, SemBioSys's subsidiary, Botaneco Specialty Ingredients Inc., is selling oleosome-based all natural products in the global personal care ingredient market. More information is available and can be accessed at www.sembiosys.com or www.botaneco.ca
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 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.
For further information: SemBioSys Genetics Inc., Andrew Baum, President and Chief Executive Officer, Phone: (403) 717-8767, E-mail: [email protected]; The Trout Group, Ian Clements, Senior Vice President, Phone: (415) 392-3385, E-mail: [email protected]