Cangene Announces Agreement to Sell U.S. Plasma Centres

 Transaction Supports Refocused Specialty Biopharmaceutical Strategy  TSX: CNJ  Readers are referred to the cautionary notes regarding Forward-looking  Information at the end of this release.  WINNIPEG, Sept. 17, 2012 /CNW/ - Cangene Corporation (Cangene) today announces  that its wholly owned subsidiary, Cangene Plasma Resources, Inc. has entered  into an agreement for the sale of its three U.S. based plasma centres to  Grifols, through wholly owned Grifols subsidiary, Biomat USA, Inc. (Biomat  USA). The transaction is expected to close in October, 2012 and is subject to  customary closing conditions. The Company plans to reinvest the net sale  proceeds in research and development programs and funding in-licensing  opportunities.  Cangene will retain its Winnipeg-based plasma centre which is focused on  collecting specialty plasma and plans to source its additional plasma needs  from the open market, including through a supply agreement with Grifols.  John A. Sedor, President and Chief Executive Officer of Cangene, said "The  sale of our U.S. plasma centres is consistent with our refocused specialty  biopharmaceutical strategy. With the previously announced cancellation of the  IGIV program, we believe it makes more sense to source plasma primarily from  the open market, rather than making the significant investment required to  achieve scale and become a low-cost competitor in the highly competitive U.S.  plasma collection industry. We believe that Cangene is now in a position of  strength in the specialty biopharmaceutical space to expand the depth of its  pipeline."  "Grifols is committed to ensuring a safe, reliable and consistent supply of  source plasma for production of life-saving medicines," said Shinji Wada,  President of Grifols Plasma Operations. "The acquisition of these centers  further strengthens our existing plasma donation platform across the U.S. and  reinforces our commitment to patients who depend on Grifols plasma-derived  therapies". Currently, Grifols is a world-leader in plasma collection, with a  network of 147 plasma donation centers in the United States that will enable  the company to collect more than 6.5 million liters each year.  Financial terms of the transaction were not disclosed.  About Cangene Corporation Cangene Corporation (TSX: CNJ), headquartered in Winnipeg, Canada, is one of  the nation's oldest and largest biopharmaceutical companies. It is focused on  the development and commercialization of hospital and oncology clinic based  therapeutics. Cangene's products are sold worldwide and include products that  have been accepted into the U.S. Strategic National Stockpile. Cangene has  employees in three locations across North America. It operates manufacturing  facilities in Winnipeg, Manitoba and Baltimore, Maryland (through its  wholly-owned subsidiary, Cangene bioPharma, Inc.) where it produces its own  products and undertakes contract manufacturing for a number of customers. For  more information about Cangene, visit the Company's website at www.cangene.com.  About Grifols Grifols is a Spanish group, specializing in the hospital-pharmaceutical  sector, and with a presence in over 100 countries. Since 2006, Grifols  ordinary (Class A) shares have been listed on the Spanish Continuous Market  and it has been included in the Ibex-35 (GRF) since 2008. Since 2011,  non-voting Grifols shares (Class B) have also been listed on the Spanish  Continuous Market (GRF.P) and on the NASDAQ (GRFS) via ADRs (American  Depositary Receipts). Grifols has become the world's third largest producer of  plasma derivatives by capacity following the recent purchase of Talecris and  is the sector's largest European company, with a balanced and diverse range of  products. The group will strengthen its position within the industry as a  vertically integrated company, on the basis of its completed and additional  planned investments. In terms of raw material, Grifols is the leading plasma  collection company, with supplies assured via its network of 147  plasmapheresis centers in the United States. Its production plants in Spain  and the United States ensure that it has the fractionation capacity to satisfy  rising demand. Geographic diversification is one of the key elements of the  group's strategy for growth, and it has a major presence in the United States,  Canada and Europe. For more information about Biomat USA or Grifols, please  visit www.grifols.com.  Cautionary Note regarding Forward-Looking Information This document contains forward-looking statements about the Corporation,  including its business operations, strategy, and expected financial  performance and condition. Forward-looking statements include statements that  are predictive in nature, depend upon or refer to future events or conditions,  or include words such as "expects", "anticipates", "intends", "plans", "will",  "believes", "estimates", or negative versions thereof, and similar  expressions. In addition, any statement that may be made concerning future  financial performance (including revenues, earnings or growth rates), ongoing  business strategies or prospects, future use, safety and efficacy of  unapproved products or unapproved uses of products, and possible future action  by the Corporation are also forward-looking statements. Forward-looking  statements are based on current expectations and projections about future  events and are inherently subject to, among other things, risks, uncertainties  and assumptions about the Corporation, economic factors and the  biopharmaceutical industry generally. They are not guarantees of future  performance. Actual events and results could differ materially from those  expressed or implied by forward-looking statements made by the Corporation due  to, but not limited to, important factors such as sales levels; fluctuations  in operating results; the Corporation's reliance on a small number of  customers including government organizations; the demand for new products and  the impact of competitive products, service and pricing; the availability and  cost of raw materials, and in particular, the cost, availability and antibody  concentration in plasma; progress and cost of clinical trials; costs and  possible development delays resulting from use of legal, regulatory or  legislative strategies by the Company's competitors; uncertainty related to  intellectual property protection and potential costs associated with its  defence as well as general economic, political and market factors in North  America and internationally; interest and foreign exchange rates; business  competition; technological change; changes in government action, policies or  regulations; decisions by Health Canada, the United States Food and Drug  Administration and other regulatory authorities regarding whether and when to  approve drug applications that have been or may be filed, as well as their  decisions regarding labeling and other matters that could affect the  availability or commercial potential of drug candidates; unexpected judicial  or regulatory proceedings; catastrophic events; the Corporation's ability to  complete strategic transactions; and other factors beyond the control of  management.  The reader is cautioned that the foregoing list of important factors is not  exhaustive and there may be other factors listed in other filings with  securities regulators, including factors set out under "Risk and  Uncertainties" in the Corporation's Management Discussion and Analysis, which,  along with other filings, is available for review at www.sedar.com. The reader  is also cautioned to consider these and other factors carefully and not to  place undue reliance on forward-looking statements. Other than as specifically  required by applicable law, the Corporation has no intention to update any  forward-looking statements, whether as a result of new information, future  events or otherwise.  Francis J. St.Hilaire Vice President, General Counsel & Secretary Ph: (204)  275-4540 Email:fsthilaire@cangene.com  SOURCE: Cangene Corporation  To view this news release in HTML formatting, please use the following URL:  http://www.newswire.ca/en/releases/archive/September2012/17/c6891.html  CO: Cangene Corporation ST: Manitoba NI: MTC BTC  
Press spacebar to pause and continue. Press esc to stop.