RICHMOND, BC, July 12 /CNW/ - Inflazyme Pharmaceuticals Ltd. (TSE, VSE: IZP) today announced that it had closed on a second tranche of convertible preferred shares with Hoechst Marion Roussel for net proceeds of CN$4,949,742 (approximately US$3.3 million). Proceeds from the offering will be used primarily to fund the development of Inflazyme's IPL576 series in asthma and H1/NK1 for the treatment of allergies. The preferred shares are convertible into common shares at Inflazyme's option any time after year one at a price based on the higher of the common share price at the time of subscription or conversion, up to a maximum of CN$9.00. Inflazyme will be required to convert the preferred shares into common stock following the completion of Phase IIa for an oral compound from both the IPL576 series and the H1/NK1 dual antagonists. Ian McBeath, President and CEO of Inflazyme said, ``This convertible preferred investment vehicle enables Inflazyme to access capital without near-term dilution to our shareholders. These shares will be converted to common stock in the future at Inflazyme's option and probably not for at least two to three years.'' Today's announcement follows the signing of a collaborative research agreement between Inflazyme and Hoechst Marion Roussel on May 14, 1999. The collaboration will provide Inflazyme with an up-front fee and equity investments by Hoechst Marion Roussel totaling up to CN$24 million (US$16 million). To date, Inflazyme has received approximately CN$18 million of this total and expects to access the remainder through preferred equity investments in the future. In addition, Inflazyme will be entitled to payments of up to US$75 million if development milestones specified in the agreement are achieved. Inflazyme will also receive double-digit royalties on future sales of any products developed under the agreement. IPL576,092 is Inflazyme's lead clinical candidate from its IPL576 series of compounds. The IPL576 series is based on a molecule originally isolated from a sea sponge by researchers at the University of British Columbia and the University of Alberta. Inflazyme has demonstrated that IPL576,092 has a significant effect on mediators of inflammation in vitro and in standard pre-clinical in vivo studies of asthma when administered orally or by inhalation. These pre-clinical studies demonstrate that IPL576,092 may have the efficacy of inhaled glucocorticoids without the related side effects. Inflazyme initiated Phase I human clinical trials with IPL576,092 in June 1999. The Company expects to receive the results of Phase I clinical trials in early 2000. IPL576 is being developed for the treatment of asthma and respiratory disease in collaboration with Hoechst Marion Roussel a world leader in pharmaceutical healthcare. Under the terms of the collaboration, Inflazyme is responsible for the development of IPL 576 through Phase IIa clinical trials. After Phase IIa trials are completed, Hoechst Marion Roussel will have the option to acquire exclusive worldwide rights (non-exclusive in Canada) to an oral dosage form of a product developed from the IPL576 series for the treatment of asthma and respiratory disease upon payment of a milestone to Inflazyme. Hoechst Marion Roussel will then be responsible for further development and commercialization of the product. Inflazyme is currently exploring other anti-inflammatory indications for IPL576 and expects to define an additional therapeutic project from this class of compounds during 1999. Hoechst Marion Roussel has a first right of refusal to license additional products developed from such projects on commercial terms to be agreed. H1/NK1 dual antagonists combine in a single molecule an antihistamine and a neuro-peptide inhibitor. In pre-clinical studies to date, H1/NK1 dual antagonist compounds have demonstrated antagonist activity at both the H1 and NK1 receptors, which indicates that they may have the potential to relieve both the itchiness and the congestion associated with allergies. Inflazyme Pharmaceuticals Ltd. is a Richmond, BC, Canada based biopharmaceutical company focused on the discovery, development and commercialization of drugs to treat serious inflammatory diseases such as asthma, rheumatoid arthritis, allergies, psoriasis and inflammatory bowel disease. In addition to IPL576, the Company has discovered several other compounds that have promising anti-inflammatory activity, including IPL423, a class of molecules being developed for rheumatoid arthritis and psoriasis. The statements made in this press release may contain certain forward-looking comments. Actual events or results may differ from the Company's expectations. In addition to the matters described in the press release, future actions by the U.S. Food and Drug Administration or equivalent regulatory authorities in various countries, results of pending or future clinical trials, as well as risk factors from time to time in the Company's SEC reports, may affect the actual results achieved by the Company. Exemption from registration pursuant to Rule 12g3-2(b), Reg. No. 82-2317. Neither the Toronto Stock Exchange nor the Vancouver Stock Exchange have reviewed this release and they do not accept responsibility for the adequacy or accuracy of this release. -0- 07/12/1999 /For further information: Jeffrey A. Bacha, Vice President, Corporate Development (800) 315-3660, www.inflazyme.com/ (IZP. IZYPF) CO: Inflazyme Pharmaceuticals Ltd. ST: British Columbia IN: MTC SU: -30- â -0- Jul/12/1999 22:15 EOS (CNS) Jul/12/1999 22:15 197 â -0- (CNS) Jul/12/1999 22:30
INFLAZYME CLOSES $4.9 MILLION INVESTMENT FROM HOECHST MARION ROU
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