Tuesday November 9, 5:00 pm Eastern Time
Company Press Release
SOURCE: NPS Pharmaceuticals, Inc.
NPS Pharmaceuticals Announces Canadian
Government $5.78 Million (U.S.) Funding for Allelix Biopharmaceuticals
SALT LAKE CITY, Nov. 9 /PRNewswire/ -- NPS Pharmaceuticals, Inc. (Nasdaq: NPSP - news), today announced that the
Canadian government has agreed to make an investment in NPS's proposed merger partner, Allelix Biopharmaceuticals Inc.
through a program known as Technology Partnerships Canada. The $5.78 million (U.S.) investment will support the clinical
research and development of ALX-0600, a potential new drug for the treatment of gastrointestinal disorders.
(Photo: newscom.com )
In September, NPS and Allelix announced that they have agreed to a merger, which is expected to close in January 2000. The
merged company will operate as NPS Pharmaceuticals, Inc. in the U.S. and as NPS Allelix Inc. in Canada. NPS believes that
the Technology Partnerships Canada investment will provide a significant financial boost to the clinical development of
ALX-0600. In return for making the investment, Allelix has agreed to pay the Canadian government a royalty on revenues
derived from products resulting from the development of ALX-0600. If proven to be safe and effective, this drug will address a
significant medical need with the potential to reach a sizable market.
Thousands of people around the world suffer from gastrointestinal ailments that have serious effects on their quality of life. Early
studies indicate that ALX-0600, an analog of the naturally occurring glucagon-like peptide 2, has the ability to stimulate the
regeneration of cells lining the small intestine. These cells are important to maintaining the integrity of the intestinal wall and to
aiding the absorption of nutrients from food. ALX-0600 thus presents a promising new treatment that could be used to combat
damage to the intestine caused by short bowel syndrome, inflammatory bowel disease, the side effects of chemotherapy and
radiation treatments, and other conditions.
''We are pleased that the Canadian government has seen fit to make this investment in what we believe is a very important
program,'' said Dr. Hunter Jackson, Chairman, President and CEO of NPS. ''This will assist the combined company in
proceeding aggressively with the development of a proprietary compound while meeting our cash management objectives.''
Technology Partnerships Canada is a Special Operating Agency of Industry Canada responsible for making strategic
investments in technological development projects. Created in 1996, Technology Partnerships Canada makes investments in
high technology growth sectors of the Canadian economy including enabling technologies, environmental technologies, and
aerospace and defense.
Following the merger of NPS and Allelix, the combined company will have a deep pipeline of late-stage clinical programs and
preclinical programs involving recombinant peptides and small molecules that address a variety of important human diseases.
Additional information regarding the merger of NPS and Allelix, as well as the programs of the combined companies may be
obtained by contacting David Clark, Director, Corporate Communications and Development at NPS Pharmaceuticals, at (801)
583-4939 or Paul Van Damme, Senior Vice President and Chief Financial Officer at Allelix Biopharmaceuticals, at (905)
677-0831. The NPS web page (www.npsp.com) also contains additional information regarding the merger, other press
releases, and a link to the Allelix web page.
NOTE: Statements included within this press release, which are not historical in nature, constitute forward-looking statements
for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Such statements involve risks
and uncertainties that could cause actual results to differ materially from those described herein. There can be no assurance that
ALX-0600 will prove to be safe and/or efficacious or successfully marketed and sold. There can be no assurance that NPS
and/or NPS Allelix will have sufficient resources to advance some of their products on their own to a stage that makes them
more partnerable without raising additional capital, that they will be successful in securing partners for unpartnered programs, or
that any of their partnered programs will succeed. Careful consideration should be given to cautionary statements made in NPS
documents filed with the SEC, in particular the Company's annual report filed on Form 10-K and the Company's Proxy
Statement on Schedule 14A related to the proposed merger with Allelix, expected to be mailed to NPS shareholders in
November 1999.
SOURCE: NPS Pharmaceuticals, Inc. |
