Feb 3 2011
"The closing of this licensing deal with ILJIN Life Science puts into motion our key strategy to advance the development of voclosporin into a Phase III clinical trial for prevention of kidney transplant rejection, the most important indication for our lead drug," stated Isotechnika CEO, Dr. Robert Foster.
Isotechnika Pharma Inc. (TSX: ISA) is pleased to announce that it has finalized the Development, Distribution and License Agreement with ILJIN Life Science Co., Ltd., previously announced on November 16, 2010. Isotechnika will now receive the license fee of US$4.5 million plus proceeds of US$2.375 million from ILJIN's purchase of its first tranche of Common Shares from treasury. The funds from this licensing agreement will be used to finance a pivotal Phase III trial of voclosporin for the prevention of kidney transplant rejection.
Dr. Foster also commented, "We are very excited to have the support of ILJIN as a strategic investor in Isotechnika. This transaction provides all stakeholders a real opportunity to realize the full value of our critical voclosporin asset. We look forward to being able to provide an update on our plans for the pivotal phase III clinical trial in the coming months."
As part of the transaction, Isotechnika amended its partnership with Paladin Labs Inc. (TSX: PLB). These amendments were made to facilitate Isotechnika's transaction with ILJIN, and will now allow Isotechnika to aggressively move forward with its clinical development plan for voclosporin in transplantation. Paladin sold 12.5 million shares of Isotechnika to ILJIN for $3.25 million and licensed additional territories to Isotechnika for $1 million. Paladin still retains rights to voclosporin for transplantation and autoimmune diseases for Canada, South Africa and Israel. Paladin recently filed a New Drug Submission (NDS) with Health Canada for voclosporin for the treatment of moderate to severe psoriasis.
Source: ISOTECHNIKA PHARMA INC.
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