AltaRex Corp - News Release
AltaRex enters agreement with Dompe
AltaRex Corp AXO
Shares issued 62,058,898 2000-11-15 close $0.58
Thursday Nov 16 2000 News Release
Mr. Richard Bagley reports
The company has entered into a memorandum of understanding (MOU) with Dompe Farmaceutici S.p.A. (Milan, Italy) to form a strategic business alliance for its lead product OvaRex MAb for a territory that includes Italy, Spain, Portugal, Switzerland, Austria and certain Eastern European countries. The MOU grants Dompe the rights of first offer for additional cancer antibodies in the territory.
In accordance with the MOU, Dompe has escrowed $5-million (U.S.) (approximately $7.75-million (Canadian)) to purchase AltaRex common shares on a private placement basis at a price of 55 Canadian cents per share, the closing price of AltaRex shares on Thursday, Nov. 9, 2000. The purchase of shares requires approval by regulatory authorities in Canada and the shares will be subject to a 180-day lockup. This investment represents part of a company plan to raise $15-million (Canadian) through the sale of common shares. In that regard the company has filed a preliminary prospectus in certain provinces of Canada for a public offering of common shares for the purpose of fulfilling this plan.
Pursuant to the MOU, Dompe also has an option to purchase an additional $5-million (U.S.) in equity in a private placement concurrent with a future public offering in the United States. Additionally, Dompe will pay up to $1.25-million (U.S.) upon OvaRex MAb commercialization in Spain and Portugal.
Under the terms of the MOU, the collaboration is structured so that AltaRex remains responsible for global product development and registration. The company will work closely and co-operatively with Dompe and other European collaborators in achieving registration for OvaRex MAb throughout Europe. Dompe becomes responsible for certain OvaRex clinical trial obligations, including clinical trial costs, and for product marketing, sales and distribution in the territory. AltaRex and Dompe will share profits after expenses.
"This step into major European economic community markets is consistent with our strategy to maximize returns in select regions through collaborations with the regional market leaders who have significant expertise in marketing biotech products," commented Richard E. Bagley, president and chief executive officer of AltaRex. "This alliance builds on our previously announced joint ventures by successfully growing our global marketing presence with best in class partners who have an outstanding record of accomplishment."
"I'm extremely pleased with this strategic business alliance which fits perfectly with our strategy to grow our biotech offerings though product rights and collaborations in specialized areas of medicine," stated Sergio Dompe, chief executive officer of Dompe Farmaceutici. "This alliance with AltaRex reflects our objective to strengthen and expand our biopharmaceutical operations in Southern and Eastern European markets as well as to add products fitting with our pipeline in the oncology area, a key strategic business segment."
Earlier this year, AltaRex announced 50:50 joint venture collaborations with Medison Pharma Ltd. (for Israel and the Middle East) and Genesis Pharma S.A. (for Greece and the Balkans).
OvaRex MAb is the company's lead product, currently in late-stage clinical development for the treatment of ovarian cancer. OvaRex MAb has received fast-track designation from the U.S. Food and Drug Administration (FDA) which can allow for accelerated review. The company will work with Dompe and its other partners to obtain regulatory approval and to bring OvaRex MAb to market in Southern and Eastern Europe as soon as possible. Dompe will serve as an expert adviser to AltaRex in this development and registration process.
About Dompe Farmaceutici S.p.A.
Based in Milan, Italy, Dompe is one of Europe's most integrated and innovative pharmaceutical and biotech companies. Traditionally established in the areas of respiratory, anti-inflammatory and osteoarticular pharmaceuticals, Dompe has since expanded its reach into biotechnology.
About Dompe Biotec
Dompe Biotec is a joint venture between Dompe Farmaceutici and Amgen. Dompe Biotec is the leading biotechnology company in Italy focused on marketing biotechnological drugs of high added value within specialized areas of medicine. Dompe Biotec gained access to three early products of biotechnology by allying with the large multinational firms that held European rights to them. Dompe Biotec has since made a point of directly pursuing North American biotech companies with innovative treatments for specific medical conditions. Dompe Biotec has established successful partnerships with global biotechnology companies such as Biogen, Genzyme and Pathogenesis, and more recently, Hemosol.
WARNING: The company relies upon litigation protection for "forward-looking" statements.
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