Another from June 15/99
SYNSORB Biotech Inc. Signs Letter of Intent Granting Exclusive License of
Potential Cystic Fibrosis Treatment to BCY Ventures Inc.
CALGARY, ALBERTA--SYNSORB Biotech Inc. ("SYNSORB") (TSE: SYB,
NASDAQ: SYBB), a pharmaceutical development company, today
announced that it has signed a letter of intent with BCY Ventures
Inc. ("BCY") to sub-license certain technologies relating to the
treatment of lung complications associated with Cystic Fibrosis
(CF). These technologies were recently licensed by SYNSORB from a
consortium including the Canadian Bacterial Disease Network
(CBDN), the Canadian Microbiology Consortium Inc. (CMCI), The
University of Alberta, the University of British Columbia, and
Novadex Pharmaceuticals Limited. The technologies have
demonstrated utility in reducing the viscosity of mucus, adhesion
of bacteria to airway lining cells, and preventing fatal
Pseudomonas infections in animal model studies.
Under the terms of the proposed agreement, BCY will have the
exclusive license to the technologies and will assume all
financial responsibility for the project. In exchange, up to
2,000,000 common shares of BCY will be issued, which will
represent 37 percent of the issued and outstanding shares of BCY
on a fully diluted basis. Upon approval of the agreement by both
SYNSORB and BCY, BCY will issue 1,000,000 shares to SYNSORB, with
the remainder to be issued following successful completion of
pre-determined milestones. SYNSORB will retain the option to
manufacture the product, and will be entitled to a seat on the
Board of Directors of BCY. The agreement, subject to shareholder
approval and regulatory approval, is expected to be finalized by
the fourth quarter of 1999.
"This initiative with BCY is important for the development of
this technology," said Dr. David Cox, President and CEO of
SYNSORB. "The relationship will ensure that SYNSORB's operational
burn rate is unaffected, but enables us to have influence over the
development and future commercialization of this important
technology. There is also substantial financial benefit to
SYNSORB."
CF is the most common lethal hereditary disease, affecting about
one in 2,500 individuals or about 80,000 patients in developed
nations. There is no cure for CF and, although the quality of
life and the life span of CF patients have been improved
dramatically, the median survival today is only about thirty
years. CF is caused by mutations in the CFTR gene, which results
in the absence of a membrane protein essential for ion transport.
The most important clinical abnormalities in CF occur in the
lungs, where the combination of repeated bacterial infections and
the failure of normal mucus clearance mechanisms leads to
pulmonary insufficiency. There is only one approved mucolytic
drug and as such there remains an unmet medical need for effective
mucolytic drugs for CF patients.
BCY Ventures is a "venture capital pool" company under the
policies of the VSE. BCY intends to develop the licensed
Technologies into novel therapies for lung complications
associated with CF and other pulmonary diseases. The
pharmaceutical products developed from these Technologies will
have low molecular weight carbohydrate polymers as the active
ingredients. Initially, the Company will focus on development of
a product, delivered using a nebulizer, for CF patients that will
decrease the use of parenteral antibiotics to treat pulmonary
infections and increase pulmonary function by improving mucus
clearability. BCY intends to develop these products in a virtual
manner that minimizes corporate infrastructure and the associated
costs, and will request SYNSORB and potentially other contract
manufacturers and research organizations to perform the
development work. The Company intends to license the products to
pharmaceutical partners for marketing prior to the start of Phase
III clinical trials.
SYNSORB 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 Calgary, SYNSORB
currently has two products in late stage clinical development,
SYNSORB Pk(R) for the prevention of HUS and the treatment of
verotoxigenic E. coli (VTEC) infections (including O157:H7), and
SYNSORB Cd(R) designed to treat recurrent antibiotic-associated
diarrhea (CDAD). SYNSORB has additional compounds in pre-clinical
development, including REOSYN, a potential cancer treatment being
developed within its subsidiary company, Oncolytics Biotech Inc.,
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 "SYBB").
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)
or
SYNSORB Biotech Inc.
W. Douglas Froom
Vice President, Business Development
(403) 283-5900
(403) 283-5907 (FAX)
For product licensing information
or
SYNSORB Biotech Inc.
Brad Thompson, Ph.D
Executive Chairman of the Board
(403) 283-5900
(403) 283-5907 (FAX)
synsorb.com
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