Press Release from Feb. 25/99
SYNSORB Biotech Inc. Signs Letter of Agreement to Acquire Cancer Company, Oncolytics Biotech Inc.
CALGARY, ALBERTA--
Human reovirus used to fight cancer cells
SYNSORB Biotech Inc. ("SYNSORB") is pleased to announce today that
SYNSORB has signed a letter of agreement subject to appropriate
regulatory approvals to acquire Oncolytics Biotech Inc. ("Oncolytics"), a biotechnology company founded on cancer research
performed at the University of Calgary involving the reovirus. Dr. Patrick Lee, Oncolytics' principal, and his research team recently announced results of a study performed on the reovirus
that were published in the prestigious journal, Science (1). It
was reported that the naturally occurring human reovirus has been
shown to selectively kill a wide variety of human cancer cell
lines in mouse models.
SYNSORB will acquire all of the outstanding shares of the
privately-held Oncolytics, with a share exchange valued at $2.5
million worth of SYNSORB shares, resulting in less than 4 percent
dilution. Initially, there will be no significant impact on
SYNSORB's burn rate. Additional payments to the existing
shareholders at Oncolytics will be payable upon completion of specific pre-determined milestones.
The publication of the article in Science and the announcement of
animal model data demonstrating that the reovirus eliminated human
cancer cells in mice models generated great interest from the
scientific community. The reovirus, short for respiratory enteric
orphan virus, is a naturally occurring virus that is believed to
cause mild infections of the upper respiratory and gastrointestinal tract in humans. SYNSORB's experience in clinical development will prove invaluable as the Company begins
the process of obtaining regulatory approval to commence Phase
I/II clinical trials on the reovirus in Calgary as soon as possible.
"This novel approach is a perfect fit with SYNSORB's current
strategic direction," commented Dr. David Cox, President and CEO
of SYNSORB Biotech Inc. "SYNSORB's core competence in drug
development makes us well-suited to develop and commercialize this
technology. We are very excited about the reovirus discovery, and
will develop this potential cancer treatment as quickly as
possible."
Oncolytics is a privately held biotechnology company whose research has focussed thus far on the potential utility of the reovirus in the treatment of cancer. It was formed by Drs. Lee,
Strong and Coffey to fully explore the potential of their
discoveries. The University of Calgary holds equity in Oncolytics
through its technology transfer company, University Technologies
International Inc.
"I am extremely pleased to enter into this agreement with the
Calgary-based SYNSORB," Dr. Lee said, "With the backing of SYNSORB
resources, we will be able to move into clinical trials for the
reovirus much faster. We agree on the significant potential of
the reovirus and are both anxious to start the trials. SYNSORB,
with its progressive approach to therapies, is a natural partner in this venture."
SYNSORB Biotech Inc. is dedicated to accelerated drug development
from the acquisition of promising compounds emerging from basic
research through clinical development, and ultimately to providing
channels to market for new discoveries. Headquartered in Canada,
SYNSORB Biotech currently has two products in late stage clinical
trials, SYNSORB Pk for the treatment of verotoxigenic E. coli
(VTEC) infections (including O157:H7), and SYNSORB Cd designed to
treat recurrent antibiotic-associated diarrhea (CDAD). SYNSORB
has additional compounds in pre-clinical development, including
potential cancer treatments and novel antibiotics, with
inflammation and anti-virals targeted in the Company's research and development program.
Shares of SYNSORB Biotech Inc. trade on the Toronto Stock Exchange
in Canada (symbol "SYB") and on NASDAQ in the United States
(ticker "SYBBF").
(1) Coffey, M.C., Strong, J.E., Forsyth, P.A., Lee, P.W.K..
Science Reovirus Therapy of Tumors with Activated Ras Pathway.
November 13 1998, vol. 282, pp.1332-1334.
This release contains certain forward-looking statements which
involve known and unknown risks, delays, uncertainties and other
factors not under the Company's control which may cause actual
results, performance or achievements of the Company to be
materially different from the results, performance or other
expectations implied by these forward-looking statements. These
factors include results of current or pending clinical trials,
actions by the FDA/HPB and those factors detailed in the Company's
registration statement on Form 20 F filed with the Securities and
Exchange Commission.
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FOR FURTHER INFORMATION PLEASE CONTACT:
The Equicom Group
Jason Hogan
Investor Relations
(416) 815-0700 ex 222
(416) 815-0080 (FAX)
United States: 800-385-5451
or
SYNSORB Biotech Inc.
Dr. Brad Thompson
Executive Chairman
(403) 283-5900
(403) 283-5907 (FAX)
synsorb.com
or
University Technologies International
Don Morberg, Communications Coordinator
University of Calgary
(403) 270-7027 ex208
or
University of Calgary
Dr. Patrick Lee
(403) 220-7548
or
Edelman Public Relations Worldwide
Lynn Hanessian
(312) 240-2815
or
SYNSORB Biotech Inc.
For clinical trial information
(403) 283-6587
or
SYNSORB Biotech Inc.
Mr. Doug Froom
For product licensing inquiries
(403) 283-5900
(403) 283-5907 (FAX)
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