BioTransplant Reports on Corporate Developments
Wednesday April 2, 7:40 am ET
- BioTransplant and Catholic University of Louvain Settle Licensing Dispute -
MEDFORD, Mass., April 2 /PRNewswire-FirstCall/ -- BioTransplant, Inc. (OTC Bulletin Board: BTRNQ.OB - News) today reported several developments that are expected to help position the Company to execute on its strategic objective of maximizing the value of its key assets through divestiture, licensing and partnering arrangements. In particular, the Company announced that it has reached a settlement agreement with the Catholic University of Louvain preserving BioTransplant's exclusive license to MEDI-507 and implemented several measures intended to further reduce the Company's operating expenses.
As previously announced, on February 27, 2003, the Company and Eligix, Inc., its wholly-owned subsidiary, filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court in Boston Massachusetts.
"I believe that we have made key strides over the past twenty-four business days since we filed for bankruptcy. We have moved forward toward achieving our overarching mission - preserving and maximizing the value of our key intellectual property assets - and we expect that the developments reported today will contribute to positioning the Company to realize the value of these assets over the long term," stated Donald Hawthorne, President and Chief Executive Officer of BioTransplant. "In addition, we are committed to moving quickly through bankruptcy proceedings with the objective of emerging as a stronger company capable of accomplishing that mission."
The progress reported today includes:
* Resolution of Disputes with the Catholic University of Louvain
The Company reached a resolution of its disputes with the Catholic University of Louvain (UCL) relating to UCL's license to BioTransplant of the BTI-322 rodent antibody and its human analogue, MEDI-507. As part of the agreement, the Company will retain its exclusive rights to develop and commercialize BTI-322 and MEDI-507. BioTransplant had previously announced that UCL was seeking to terminate the license. The Company has sublicensed BTI-322 and MEDI-507 to MedImmune, Inc., and MedImmune is currently conducting Phase II clinical trials with MEDI-507 for the treatment of psoriasis. MEDI-507 is also an important component of the AlloMune(TM) Systems and BioTransplant has sublicensed its rights to develop MEDI-507 to Immerge Biotherapeutics, its xenotransplantation joint venture with Novartis.
* Termination of Facility Lease Obligations
The Company announced that it has successfully terminated its lease obligation for its Charlestown, Massachusetts facility. BioTransplant has also reached an agreement in principle for the termination of its lease obligation for its Medford, Massachusetts facility.
* Partnering Discussions
The Company continues to actively pursue partnering and licensing agreements for its currently unlicensed assets, the Eligix(TM) HDM Cell Separation System and the AlloMune(TM) Systems.
* Form 10-K Update
The Company has filed a Form 12b-25, Notification of Late Filing, as required by the Securities and Exchange Commission (SEC) in connection with a delay in the filing of its Annual Report on Form 10-K for its fiscal year ended December 31, 2002. As a result of the demands of the bankruptcy process and the need to have the application to retain independent auditors approved by the Bankruptcy Court, the Company has not been able to complete the Form 10-K disclosures or obtain an audit report in the time required. The Company expects to file its Form 10-K promptly upon completing the required disclosures and receiving the audit report.
The Company expects that the net loss per share for the year ending December 31, 2002 will be significantly larger than the net loss per share in the same period of 2001. The change in net loss per share may reflect an additional write-down, or total write-off, of the remaining goodwill and intangible assets of the Eligix business as well as the carrying value of its facility-related property and equipment at December 31, 2002. The Company is not able to estimate the expected change in operating results resulting from the impairment of these non-cash assets as the audit of its financial statements has not yet been completed. |
