and Further Investment in Pharmaplan
NEWS RELEASE TRANSMITTED BY MARKETWIRE
FOR: Paladin Labs Inc.
TSX SYMBOL: PLB
February 22, 2011
Paladin Labs Announces Proposed Change of Control of ProStrakan and Further
Investment in Pharmaplan
MONTREAL, CANADA--(Marketwire - Feb. 22, 2011) - Paladin Labs Inc (TSX:PLB), a
leading Canadian specialty pharmaceutical company, today announced that, in
connection with the proposed acquisition of ProStrakan by Kyowa Hakko Kirin
Co., Ltd., it has agreed to accept repayment of its secured debt facility of
GBP 50 million ($77,230,000). Per the terms of the Agreement, Paladin will
receive a payment equivalent to the balance of interest payable for the first
year together with a break free of GBP 2.0 million ($3,089,200). Moreover,
Paladin will retain the rights to the products for Canada and some select
emerging markets, it had licensed in connection with the Agreement. The
acquisition is scheduled to close by early June 2011 and is subject to the
approval of ProStrakan's shareholders.
Further, Paladin has entered into an agreement with Pharmaplan of South Africa
to accelerate the purchase of Pharmaplan shares and acquire an additional 10%
of Pharmaplan in 2011 as opposed to the original 5%. This will increase
Paladin's ownership from 34.99% to 44.99% effective March 1, 2011
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty
pharmaceutical company focused on acquiring or in-licensing innovative
pharmaceutical products for the Canadian and world markets. With this strategy,
a focused national sales team and proven marketing expertise, Paladin has
evolved into one of Canada's leading specialty pharmaceutical companies.
Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB.
For more information about Paladin, please visit the Company's web site at
This press release may contain 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 Company considers the
assumptions on which these forward-looking statements are based to be
reasonable at the time they were prepared, but cautions that these assumptions
regarding the future events, many of which are beyond the control of the
Company and its 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 report as well as in the
Company's Annual Information Form for the year ended December 31, 2009.
The Company disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information or future
events and except as required by law. For additional information on risks and
uncertainties relating to these forward-looking statements, investors should
consult the Company's ongoing quarterly fillings, annual report and Annual
Information Form and other fillings found on SEDAR at www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Paladin Labs Inc.
Samira Sakhia, Chief Financial Officer
INDUSTRY: Pharmaceuticals and Biotech - Biotech, Pharmaceuticals and Biotech -
Drugs, Pharmaceuticals and Biotech - Equipment and Supplies, Pharmaceuticals
and Biotech - Trials
-0--0- Feb/22/2011 13:30 GMT
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