Paladin Labs Inc. (TSX:PLB), a leading Canadian specialty pharmaceutical company, today announced that it has entered into a strategic partnership with Isotechnika Inc. (TSX: ISA) for the commercialization of voclosporin, Isotechnika's next-generation calcineurin inhibitor, in Canada, Mexico, Central & South America, Israel and South Africa ("Territory").
Under this partnership, Paladin will pay $7 million cash and provide committed R&D funding of $4.35 million to further develop voclosporin. In addition, Paladin will own 19% of a new company called Isotechnika Pharma Inc., a public company that will continue the development of voclosporin. Isotechnika Pharma will be entitled to royalties on Paladin's sales in the Territory, and Paladin will receive royalties on the sales of voclosporin in other markets.
"We are pleased to partner with Isotechnika for the development & commercialization of voclosporin. With positive results from a recently completed Phase III trial in psoriasis, we intend to submit voclosporin for Canadian regulatory approval by the end of 2009. We believe voclosporin will find a profitable niche treating psoriasis patients, and we are excited by the much larger market opportunity for vocolosporin in the transplant indication. We look forward to participating alongside current Isotechnika shareholders in a company that will continue to develop voclosporin for the benefit of patients and shareholders," stated Jonathan Ross Goodman, President & CEO of Paladin Labs Inc.
"We are pleased to be partnering with a company like Paladin Labs, a well-regarded commercialization partner, in important pharmaceutical markets," said Dr. Foster, President & CEO of Isotechnika. "We are pleased to be able to secure capital in such a difficult market, while retaining the rights to market voclosporin in the largest, most strategic markets, including the U.S., Europe, Japan and Asia. With this improved capital position, we are better positioned to secure a global commercialization deal for voclosporin."
"This deal provides us with another product with two indications to commercialize outside of Canada. It joins our growing international business, which now includes Impavido(R) (worldwide), Antizol(R) (worldwide), Unisom(R) (Canada, Australia and New Zealand), Pennsaid Plus(R) and another undisclosed topical pain product (Canada, South Africa, Israel, Central and South America)," added Mr. Goodman.
Over the longer term, Paladin expects that its commercialization expertise and Isotechnika's significant expertise in drug discovery and development, will together identify and acquire through Isotechnika additional late-stage clinical assets. This stands to strengthen Isotechnika's product pipeline and further increase Paladin's development portfolio for Canada and other strategic markets of interest.
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
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. For more information, please visit the Company's web site at www.paladinlabs.com.
This news release contains 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 Companies consider the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but caution that these assumptions regarding the future events, many of which are beyond the control of the Companies and their subsidiaries, 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 reports, as well as in the Companies' Annual Information Forms for the year ended December 31, 2008. The Companies disclaim any intention or obligation to update or revise any forward-looking statements whether a result of new information, future events, or except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Companies' ongoing quarterly filings, annual reports and Annual Information Forms and other filings found on SEDAR at www.sedar.com.
SOURCE: Paladin Labs Inc.
Paladin Labs Inc. Samira Sakhia Chief Financial Officer 514-669-5367 514-344-4675 (FAX) This email address is being protected from spambots. You need JavaScript enabled to view it. www.paladinlabs.com