Altachem Pharma Ltd. Signs Letter Of Intent To Purchase 100% Of World Rights
7/17/01
ALTACHEM PHARMA LTD ("AAF-V;ALPJF-0") - Signs Letter Of Intent To
Purchase 100% Of World Rights - To Bionex(TM), A Novel Product That
Inactivates The Human - Immuno-Deficiency Virus (HIV) In Blood Compounds
Altachem to purchase world rights to the 'holy grail' of
blood banking
In another move to secure the Company's platform for continued global
expansion, Warren Jackson, President and CEO of Altachem Pharma Ltd.
('Altachem'), announced today the signing of a Letter of Intent to purchase 100%
of the world rights to develop, manufacture and sell Bionex(TM). Bionex(TM) is a
compound used to 'screen and clean' blood supplies against contamination by a
number of viruses, including HIV, hepatitis B and C, herpes, and other viruses
and bacterial contaminants.
The product was discovered by Dr. Rene-Guy Busnel, an internationally known
scientist in the fields of bio-acoustics and biochemistry. Dr. Busnel was formerly
the laboratory head of CNRS-INRA, Jouy-en-Josas, France.
Under the proposed transaction, Altachem will purchase the world rights to
Bionex(TM) from Bionel, a private Biotechnology company based in Maryland,
U.S.A., in consideration of 400,000 common shares of Altachem to be issued
from treasury plus royalties, subject to certain conditions and the receipt of all
necessary stock exchange and regulatory approvals.
Mr. Jackson explained the significance of the proposed acquisition of the global
rights to Bionex(TM): "The discovery of this technology can be viewed as the
'holy grail' of blood banking. It is possible that this technology could eventually
replace all existing techniques for processing blood and blood products."
Despite the highly publicized incidence of HIV infection caused by tainted blood
products, there are at present no products available that ensure zero-risk blood
transfusion products. Because the compounds used in Bionex(TM) are both
effective against bacteria and viruses found in the blood supply and blood
products, and are safe for human consumption and contact, they are believed to
be the first product that entirely negates the risks inherent in blood transfusion.
The market for donated blood and plasma in North America alone exceeds 23
million litres per year.
The Bionex(TM) product has the ability to target and inactivate specific
pathogens within a contaminated product, including the HIV, hepatitis B and C,
and herpes viruses. The product works by introducing one or more of its
compounds into a blood bag either before or after collecting whole blood, allowing
the properties of the compound to completely de-contaminate the blood. The
technology also includes methods for treating other biological fluids such as
plasma, bone marrow and sperm.
The proposed acquisition of the global rights to Bionex(TM) represents a
significant achievement for Altachem and a major step forward in its continuing
efforts to build shareholder value by identifying, investing in, manufacturing and
producing pharmaceutical products in Canada and internationally which have
exceptional market potential.
"Altachem's recent Joint Venture registered in the People's Republic of China is
expected to significantly contribute to our bottom line in the coming quarters,"
said Mr. Jackson. "The acquisition of the global rights to Bionex(TM) will enhance
the Company's growing financial strength while providing Altachem with another
strong foothold in the global pharmaceutical market. The Bionex(TM) technology
complements our existing Anticort and ACP-HIP technologies which have
potential for the treatment of HIV (AIDS) and Karposi's Sarcoma. The Bionex(TM)
acquisition completes Altachem's strategy towards providing a fully integrated
approach for the treatment of existing HIV and for prevention against further
spread of HIV."
Altachem Pharma Ltd. is a publicly traded (CDNX:AAF) Alberta-based
pharmaceutical company that is committed to developing new and improved
pharmaceutical products to globally enhance the quality of life. Altachem invests
in, develops, manufactures and distributes pharmaceutical products in Canada
and internationally. The Company is certified compliant with internationally
recognized quality system standards, ISO 9002:1994, ISO 13488 and EN 46002.
Certain information contained in this press release may be forward-looking and is
subject to unknown risks and uncertainties. Although the Company believes that
the expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove correct. This is neither
an offer to buy or sell a security. For informational purposes only, from sources
deemed to be reliable. TEL: (780) 486-8331 ext. 331
Roger Andrews, Investor Relations FAX: (780) 448-1436
Altachem Pharma Ltd. TEL: (877) 502-5939 Email: roger@altachempharma.com
Web: www.altachempharma.com TEL: (416) 979-8300
Don Bain, Vice President FAX: (416) 979-8638
McManus Elliott Communications Inc. Email: don@mcmanuselliott.com |
