Tekmira and Alnylam Restructure Relationship and Settle All Litigation

Tekmira and Alnylam Restructure Relationship and Settle All Litigation

VANCOUVER, British Columbia, Nov. 12, 2012 (GLOBE NEWSWIRE) -- Tekmira
Pharmaceuticals Corporation (Nasdaq:TKMR) (TSX:TKM) today announced that it
has entered into a settlement agreement with Alnylam Pharmaceuticals, Inc.
that resolves all litigation between the companies, and has signed a new
licensing agreement that restructures the relationship and provides clarity on
all intellectual property and licensing issues between the companies. As a
result of the restructuring and new agreements, Tekmira will receive $65
million within 10 days and is eligible to receive $10 million in near-term
milestone payments expected to be received in 2013.

"Today's announcement provides assurances for our stakeholders that we
accomplished what we set out to do when we initiated this litigation. We now
have clarity around the intellectual property that protects our lipid
nanoparticle (LNP) technology and a cash payment that will enable us to
continue the execution of our business plan into 2015," said Dr. Mark J.
Murray, Tekmira's President and CEO.

"Tekmira is entering an exciting new era of growth and development. Clarity of
rights and ownership around our LNP intellectual property – the leading
technology for the systemic delivery of RNAi therapeutics – combined with a
strong balance sheet should strengthen our ability to invest in, advance and
expand our own product pipeline. We also look forward to establishing new
business relationships with pharmaceutical partners driven by intellectual
property certainty and recent promising clinical data validating the
therapeutic utility of LNP-enabled products," added Dr. Murray.

As part of this settlement and restructuring, all previous agreements between
the companies are terminated and a new license agreement has been established
that provides clear terms outlining Tekmira's LNP intellectual property. Under
the terms of the new license agreement:

  *Alnylam will transfer all agreed-upon patents and patent applications
    related to LNP technology for the systemic delivery of RNAi therapeutic
    products, including the MC3 lipid family, to Tekmira, who will own and
    control prosecution of this intellectual property portfolio. Tekmira is
    the only company able to sublicense LNP intellectual property in future
    platform-type relationships.
    
  *Tekmira will receive a total of $65 million in cash payments within 10
    days. This includes $30 million associated with the termination of the
    manufacturing agreement and $35 million associated with the termination of
    the previous license agreements, as well as a modification of the
    milestone and royalty schedules associated with Alnylam's ALN-VSP,
    ALN-PCS, and ALN-TTR02 programs.
    
  *Tekmira is also eligible to receive an additional $10 million in near-term
    milestones, comprised of a $5 million payment upon ALN-TTR02 entering a
    pivotal trial and a $5 million payment related to initiation of clinical
    trials for ALN-VSP in China. Both near-term milestones are expected to
    occur in 2013.
    
  *Alnylam no longer has "opt-in" rights to Tekmira's lead oncology product,
    TKM-PLK1; Tekmira now holds all development and commercialization rights
    related TKM-PLK1, which is expected to enter Phase 2 clinical trials in
    2013.
    
  *In addition to its eight existing InterfeRx licenses, Tekmira will receive
    five additional non-exclusive licenses to develop and commercialize RNAi
    therapeutics based on Alnylam's siRNA payload technology. Tekmira will pay
    Alnylam milestones and royalties for these products.
    
  *Alnylam has a license to use Tekmira's intellectual property to develop
    and commercialize products, including ALN-TTR02, ALN-VSP, ALN-PCS, and
    other LNP-enabled products. Alnylam has rights to sublicense Tekmira's LNP
    technology if it is part of a product sublicense. Tekmira remains eligible
    for milestone and royalty payments as Alnylam's LNP-enabled products are
    developed and commercialized.

Alnylam and Tekmira have agreed to settle all ongoing litigation between the
parties. The parties have also agreed to a resolution of the interference
proceeding related to Alnylam-owned US Patent No. 7,718,629 directed to an
siRNA component in ALN-VSP. Finally, the parties have agreed to a covenant not
to sue on matters related to the current dispute in the future, which includes
liquidated damages to be paid if the covenant is breached, and have also
agreed to resolve any future disputes that might arise over the next three
years with binding arbitration.

Tekmira and AlCana Technologies, Inc. have also agreed to settle all ongoing
litigation between the parties. Tekmira expects to enter into a cross license
agreement with AlCana which will include milestone and royalty payments, and
AlCana has agreed not to compete in the RNAi field for five years.

About RNAi and Tekmira's LNP Technology

RNAi therapeutics have the potential to treat a broad number of human diseases
by "silencing" disease causing genes. The discoverers of RNAi, a gene
silencing mechanism used by all cells, were awarded the 2006 Nobel Prize for
Physiology or Medicine. RNAi therapeutics, such as "siRNAs," require delivery
technology to be effective systemically. Tekmira believes its LNP technology
represents the most widely adopted delivery technology for the systemic
delivery of RNAi therapeutics. Tekmira's LNP platform is being utilized in
multiple clinical trials by both Tekmira and its partners. Tekmira's LNP
technology (formerly referred to as stable nucleic acid-lipid particles or
SNALP) encapsulates siRNAs with high efficiency in uniform lipid nanoparticles
that are effective in delivering RNAi therapeutics to disease sites in
numerous preclinical models. Tekmira's LNP formulations are manufactured by a
proprietary method which is robust, scalable and highly reproducible and
LNP-based products have been reviewed by multiple FDA divisions for use in
clinical trials. LNP formulations comprise several lipid components that can
be adjusted to suit the specific application.

About Alnylam RNAi Technology

Tekmira has licenses to Alnylam RNAi intellectual property for certain siRNA
programs.

About Tekmira

Tekmira Pharmaceuticals Corporation is a biopharmaceutical company focused on
advancing novel RNAi therapeutics and providing its leading lipid nanoparticle
delivery technology to pharmaceutical partners. Tekmira has been working in
the field of nucleic acid delivery for over a decade and has broad
intellectual property covering LNPs. Further information about Tekmira can be
found at www.tekmirapharm.com. Tekmira is based in Vancouver, B.C.

The Tekmira Pharmaceuticals logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8319

Forward-Looking Statements and Information

This news release contains "forward-looking statements" or "forward-looking
information" within the meaning of applicable securities laws (collectively,
"forward-looking statements"). Forward-looking statements are generally
identifiable by use of the words "believes," "may," "plans," "will,"
"anticipates," "intends," "budgets," "could," "estimates," "expects,"
"forecasts," "projects" and similar expressions, and the negative of such
expressions. Forward-looking statements in this news release include
statements about the settlement to resolve all litigation between Tekmira and
Alnylam Pharmaceuticals, Inc. and AlCana Technologies, Inc., including the
patent infringement lawsuit; statements about the quantum and timing of
Tekmira's expected payments related to the settlement agreement and new
licensing agreement with Alnylam; statements about Tekmira's expected payments
funding the continued execution of its business plan into 2015; Tekmira's
ability to invest in, advance and expand its product pipeline; the
establishment of new business relationships with pharmaceutical partners;
clinical data validating the therapeutic utility of LNP-enabled products;
expected timing of Phase 2 clinical trials for TKM-PLK1; milestones and
royalty payments from Alnylam's LNP-enabled products; the additional five
non-exclusive InterfeRx licenses; future disputes and mechanisms for
resolution of disputes with Alnylam; Tekmira's expectations of entering into a
cross license agreement with AlCana, which includes anticipated milestone and
royalty payments and an expected agreement for AlCana not to compete in the
RNAi field for five years; and Tekmira's strategy, future operations, clinical
trials, prospects and the plans of management; RNAi (ribonucleic acid
interference) product development programs; the future royalty payments
expected from the ALN-TTR, ALN-VSP, ALN-PCS and other LNP-enabled product
development programs of Alnylam; and Tekmira's expectations with respect to
existing and future agreements with third parties.

With respect to the forward-looking statements contained in this news release,
Tekmira has made numerous assumptions regarding, among other things: LNP's
status as a leading RNAi delivery technology; the timing and results of
clinical data releases and use of LNP technology by Tekmira's development
partners and licensees; the time required to complete research and product
development activities; the timing and quantum of payments to be received
under contracts with Tekmira's partners including Alnylam and others; the
timing of receipt of an immediate payment of $65 million and $10 million in
additional milestone payments from Alnylam expected in 2013; Tekmira's receipt
of five additional non-exclusive InterfeRx licenses; Tekmira's financial
position and its ability to execute on its business strategy; and Tekmira's
ability to protect its intellectual property rights and not to infringe on the
intellectual property rights of others. While Tekmira considers these
assumptions to be reasonable, these assumptions are inherently subject to
significant business, economic, competitive, market and social uncertainties
and contingencies.

Additionally, there are known and unknown risk factors which could cause
Tekmira's actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements contained herein. Known risk factors
include, among others: expected payments related to the licensing agreement
between Tekmira and Alnylam may not be received in the quantum and on the
timing currently anticipated, or at all; payments received from the settlement
may not be sufficient to fund Tekmira's continued business plan as currently
anticipated; Tekmira may never invest in, advance or expand its product
pipeline; Tekmira may not be able to establish new business relationships with
pharmaceutical partners; LNP-enabled products may have no therapeutic utility;
TKM-PLK1 may never enter into Phase 2 clinical trials; Tekmira may never
receive milestones or royalty payments from Alnylam; Tekmira may not receive
any additional non-exclusive InterfeRx licenses; the possibility that Tekmira
does not enter into a cross license agreement with AlCana on the terms
currently anticipated, or all; the possibility that other organizations have
made advancements in RNAi delivery technology that Tekmira is not aware of;
difficulties or delays in the progress, timing and results of clinical trials;
future operating results are uncertain and likely to fluctuate; economic and
capital market conditions; Tekmira's ability to obtain and protect
intellectual property rights, and operate without infringing on the
intellectual property rights of others; Tekmira's research and development
capabilities and resources will not meet current or expected demand; Tekmira's
development partners and licensees conducting clinical trial, development
programs and joint venture strategic alliances will not result in expected
results on a timely basis, or at all; anticipated payments under contracts
with Tekmira's collaborative partners may not be received by Tekmira on a
timely basis, or at all, or in the quantum expected by Tekmira; Tekmira's
products may not prove to be effective in the treatment of cancer
andinfectious disease; and the possibility that Tekmira has not sufficiently
budgeted for expenditures necessary to carry out planned activities.

A more complete discussion of the risks and uncertainties facing Tekmira
appears in Tekmira's annual report on Form 20-F for the year ended December
31, 2011 (Annual Report), which is available at www.sedar.com or at
www.sec.gov/edgar.shtml. All forward-looking statements herein are qualified
in their entirety by this cautionary statement, and Tekmira disclaims any
obligation to revise or update any such forward-looking statements or to
publicly announce the result of any revisions to any of the forward-looking
statements contained herein to reflect future results, events or developments,
except as required by law.

CONTACT: TEKMIRA
         Investors
         Jodi Regts
         Director, Investor Relations
         Phone: 604-419-3234
         Email: jregts@tekmirapharm.com
        
         Media
         David Ryan
         Longview Communications Inc.
         Phone: 416-649-8007
         Email: dryan@longviewcomms.ca

Tekmira Pharmaceuticals Logo
 
Press spacebar to pause and continue. Press esc to stop.