ProMetic to Obtain Controlling Stake in Pathogen Removal and
Diagnostic Technologies Inc.
- ProMetic to acquire common stock held by American Red Cross, in a
cashless transaction, taking ProMetic's stake in PRDT to 77%
- American Red Cross to remain involved on the Board of Directors of
PRDT
MONTREAL, QC and CAMBRIDGE, ENGLAND -- (MARKET WIRE) -- 04/09/08 --
ProMetic Life Sciences Inc. (TSX: PLI) ("ProMetic") announces that
ProMetic has signed a Letter of Intent ("LOI") to acquire the
American Red Cross' ("ARC") common stock holding in Pathogen Removal
and Diagnostic Technologies Inc. ("PRDT"), the joint venture
established by ProMetic and ARC in 2002 to develop and commercialize
products to diagnose and reduce pathogens in blood, blood
derivatives, biopharmaceuticals and other biological products.
The transaction contemplated by the LOI is a natural progression
following commercialization of the P-Capt(R) filter and the prion
reduction resin that was fully licenced to ProMetic.
The terms of the LOI provide for an ongoing royalty stream to ARC
based on income derived from PRDT technology. In exchange, ProMetic
will raise its ownership position in PRDT to 77% by acquiring ARC's
51% stake in PRDT. The remaining 23% will continue to be held by the
academic co-founders. ARC will continue to hold its preferred stock
and maintain representation on the Board of Directors.
"With the commercialization of the PRDT technology well underway and
the projected strong market demand for this technology, ProMetic's
increased stake in PRDT to 77% will allow for the revenues derived
from the technology to be fully consolidated into ProMetic's
financial results," stated Mr. Bruce Pritchard, ProMetic's Vice
President of Corporate Development. Mr. Pritchard added: "The
structure of this deal is beneficial to both parties, allowing ARC to
share in the ongoing success of the jointly developed technology,
whilst not requiring a cash payment by ProMetic".
"ARC has played a pivotal role within PRDT in advancing the
technology to a point of commercialization," commented Dr. Peter
Edwardson, Vice President of Medical Technologies at ProMetic's UK
division. "The P-Capt(R) prion reduction filter, in addition to the
use of the prion capture affinity resin for biopharmaceutical use,
has moved from an R&D focus to a commercial focus."
According to Dr. Steve Burton, Chief Executive Officer of ProMetic's
UK division, "PRDT is uniquely positioned to capitalize on the
growing market for prion removal. Corporate control moving from ARC
to ProMetic will allow the business to be driven forward in a highly
commercial fashion, allowing the full potential to be earned from the
technology."
About Variant Creutzfeldt-Jakob Disease
Variant Creutzfeldt-Jakob disease ("vCJD") is a fatal central nervous
system disorder which incubates without symptoms for ten years or
more before beginning an inexorable clinical progression to death
over a 6 to 24 months period. vCJD first appeared in 1996 following
a massive exposure of the UK population to BSE contaminated meat and
other bovine products during the previous decade. So far, most of
the infections have occurred in children and young adults who
accumulate characteristic depositions of misfolded prion proteins in
their brains and other nervous tissues. The death of neurons gives a
sponge-like appearance to the brain. Even though the first wave of
vCJD cases has peaked, scientists remain concerned that other peaks
will follow. This is because the first cases were from a single
genetic subgroup of the prion protein that appears to have a shorter
incubation time than other prion genotypes. Infections in these
other genotypes may still be incubating. A survey of surgically
removed tissues analyzed for abnormal prion protein estimated a
minimum of 3,800 asymptomatic vCJD carriers in the UK. The number
could be much larger. vCJD carriers appear normal and donate blood
with the same frequency as the general population. So far there have
been four recognized cases of transmission of vCJD by transfusion of
blood donated by persons incubating the disease. Transfusion
transmission appears to be highly efficient in humans and animals.
The 2006 National CJD Surveillance Unit report concluded that "the
incidence of vCJD may increase again, particularly if different
genetic subgroups are found but with longer incubation periods".
Abnormal prion proteins are an essential component of vCJD
infectivity and may be the only component. The adsorption of prion
proteins by PRDT ligands removes vCJD infectivity.
For additional information please refer to the following articles:
Gregori L, Lambert BC, Gurgel P et al. Reduction of transmissible
spongiform encephalopathy infectivity from human red blood cells with
prion protein affinity ligand. Transfusion 2006; 46:1152-1161
Wroe SJ, Pal S, Siddique D, et al. Clinical presentation and
pre-mortem diagnosis of variant Creutzfeldt-Jakob disease associated
with blood transfusion : a case report. Lancet 2006; 368:2061-67
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. ("ProMetic") (www.prometic.com) is a
biopharmaceutical company specialized in the research, development,
manufacture and marketing of a variety of commercial applications
derived from its proprietary Mimetic Ligand(TM) technology. This
technology is used in large-scale purification of biologics and the
elimination of pathogens. ProMetic is also active in therapeutic drug
development with the mission to bring to market effective,
innovative, lower cost, less toxic products for the treatment of
hematology and cancer. Its drug discovery platform is focused on
replacing complex, expensive proteins with synthetic "drug-like"
protein mimetics. Headquartered in Montreal (Canada), ProMetic has
R&D facilities in the U.K., the U.S. and Canada, manufacturing
facilities in the U.K. and business development activities in the US,
Europe, Asia and in the Middle-East.
About the American Red Cross
The American Red Cross (www.redcross.org) helps people prevent,
prepare for and respond to emergencies. Last year, almost a million
volunteers and 35,000 employees helped victims of almost 75,000
disasters; taught lifesaving skills to millions; and helped U.S.
service members separated from their families stay connected. Almost
4 million people gave blood through the Red Cross, the largest
supplier of blood and blood products in the United States. The
American Red Cross is part of the International Red Cross and Red
Crescent Movement. An average of 91 cents of every dollar the Red
Cross spends is invested in humanitarian services and programs. The
Red Cross is not a government agency; it relies on donations of time,
money, and blood to do its work. Ms. Mary Elcano is the Acting
President and CEO of the American National Red Cross.
About Pathogen Removal and Diagnostic Technologies Inc.
Pathogen Removal and Diagnostic Technologies Inc. ("PRDT") is a joint
venture established in April 2002 by The American Red Cross and
ProMetic Life Sciences Inc., and allows for the exchange of
technology and knowledge between the two organizations. PRDT's main
goal is to develop products and devices to remove and detect
different pathogens from biological sources. This research augments
work that ProMetic, the American Red Cross and PRDT's scientific
founders have been conducting independently for many years.
About PRDT Academic Co-founders
Dr. Robert G. Rohwer is the Director of the Molecular Neurovirology
Laboratory, Veteran's Affairs Medical Center and Associate Professor
of Neurology, at the University of Maryland School of Medicine. For
30 years Dr. Rohwer has conducted research on transmissible
spongiform encephalopathies ("TSEs"), a class of fatal
neurodegenerative diseases that include Creutzfeldt-Jakob disease,
which infects humans, scrapie, which infects sheep and goats, and
Bovine Spongiform Encephalopathy ("BSE"), a newly emergent disease
that affects both cattle and humans. Dr. Rohwer's studies on the
kinetics of inactivation of the TSE agents have provided the
scientific foundation for disinfection guidelines in the U.S. and
worldwide. More recently Dr. Rohwer and his laboratory team have
conducted critical experiments establishing the level, distribution
and transmissibility of TSE infectivity in blood, the results of
which have been used to shape government policies on TSE risk
management around the world. Dr. Rohwer consults on the management
of TSE risks for the World Health Organization, the European
Commission, Health Canada, the U.S. Food and Drug Administration, the
American Red Cross, the U.S. Department of Agriculture and numerous
commercial clients in the biotechnology, pharmaceutical, agribusiness
and related industries, including ProMetic Life Sciences Inc.
Dr. Robert G. Rohwer is the Director of the Molecular Neurovirology
Laboratory, Veteran's Affairs Medical Center and Associate Professor
of Neurology, at the University of Maryland School of Medicine. For
30 years Dr. Rohwer has conducted research on transmissible
spongiform encephalopathies ("TSEs"), a class of fatal
neurodegenerative diseases, including Creutzfeldt-Jakob disease,
which infects humans, scrapie, which infects sheep and goats, and
Bovine Spongiform Encephalopathy ("BSE"), a newly emergent disease
that affects both cattle and humans. Dr. Rohwer's studies on the
kinetics of inactivation of the TSE agents have provided the
scientific foundation for disinfection guidelines in the U.S. and
worldwide. Recently Dr. Rohwer and his laboratory team have conducted
critical experiments establishing the level, distribution and
transmissibility of TSE infectivity in blood, the results of which
are being used to shape government policies on TSE risk management
around the world. Dr. Rohwer consults on the management of TSE
risks for the World Health Organization, the European Commission,
Health Canada, the U.S. Food and Drug Administration, the American
Red Cross, the U.S. Department of Agriculture and numerous commercial
clients in the biotechnology, pharmaceutical, agribusiness and
related industries, including ProMetic Life Sciences Inc.
About ProMetic BioSciences Ltd
Using its unique and proprietary Mimetic Ligand(TM) technology,
ProMetic BioSciences Ltd ("PBL") specializes in the development and
manufacture of robust affinity separation materials which provide
very high levels of purification. This is achieved by use of small
chemical affinity ligands designed to bind a target biomolecule
specifically and reversibly. In view of their use for the production
of therapeutics, ProMetic's affinity products are manufactured
according to a strict quality system based on good manufacturing
practice at PBL's ISO 9001:2000 certified manufacturing facility on
the Isle of Man, which completed a pounds sterling 1.5 million
expansion in 2005. PBL also operates an R&D laboratory located on the
Cambridge Science Park, United Kingdom.
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 on page 21 of
ProMetic's Annual Information Form for the year ended December 31,
2007, under the heading "Risk Factors". 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.
Contacts:
Company Inquiries
ProMetic Life Sciences Inc.
Pierre Laurin
President and CEO
+1-514-341-2115
p.laurin@prometic.com
ProMetic BioSciences Ltd
Peter Edwardson
PRDT Program Director & Vice-President,
Medical Technologies
+44-1223-420-300
pedwardson@prometicbiosciences.com
ProMetic Life Sciences Inc.
Anne Leduc
Manager, Investor Relations & Communications
+1-514-341-2115
a.leduc@prometic.com
ProMetic Life Sciences Inc.
Bruce Pritchard
Vice-President, Corporate Development
+44-1223-420-300
bpritchard@prometicbiosciences.com
Echoes Financial Network Inc.
Dominic Sicotte
+1-514-842-9551
dsicotte@echoesfinancial.com
Investor Relations
Lippert / Heilshorn & Associates
Bruce Voss
+1-310-691-7100
BVoss@lhai.com
Lippert / Heilshorn & Associates
Kim Golodetz
+1-212-838-3777
KGolodetz@lhai.com
Media Relations
Lippert / Heilshorn & Associates
Jules Abraham
+1-212-838-3777
JAbraham@lhai.com
