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Biotech / Medical : Gliatech (GLIA) -- Ignore unavailable to you. Want to Upgrade?

To: Jorgen Jensen who wrote (1984)	3/7/2003 1:04:30 PM
From: tuck	Read Replies (1) \| Respond to of 2001

>>CLEVELAND, March 7 /PRNewswire/ -- Solentix BioSciences, Inc. ("Solentix") today announced the proposed purchase of an anti-inflammatory research platform from Gliatech Inc. (GLIAQ.PK). Gliatech entered a motion yesterday in the U.S. Bankruptcy Court for the Northern District of Ohio to sell certain patent rights and contracts of its anti-inflammatory research platform to Solentix. Such agreement is subject to Bankruptcy Court approval and final corporate approvals, and the transaction is expected to close at the end of first quarter of 2003. Solentix is a newly formed pharmaceutically-based biotechnology company located in Cleveland, Ohio. Solentix's core business strategy is to develop therapeutics for major unmet clinical needs for chronic central nervous system ("CNS") diseases. The worldwide market opportunity for CNS therapeutic targets is in excess of $44 billion. Solentix has initially targeted development of novel treatments for chronic brain diseases including depression, schizophrenia, drug addiction and Parkinsonism. With the proposed acquisition, Solentix will build on its core business strategy to include novel therapeutics for acute and chronic inflammatory conditions. Such conditions may be associated with cardiopulmonary bypass surgery, heart attacks, stroke and rheumatoid arthritis. The market potential for therapeutic targets aimed at preventing inflammation in acute conditions is expected to grow to $6 billion, and in chronic conditions to over $7 billion in the next ten years. Gliatech presently owns certain patents related to the complement protein, properdin. This protein appears to play an important role in regulating inflammatory responses in both acute and chronic conditions. Gliatech and Abgenix, Inc. have an agreement that provides Abgenix with an exclusive license to develop and commercialize anti-properdin antibody therapies in exchange for research funding and other potential payments. The joint development program under this contract may be terminated at Abgenix's discretion, whereby Gliatech would have the option to continue development. The proposed purchase if approved by the bankruptcy court would assign this contract to Solentix. In addition, as part of the consideration of the sale, Gliatech would receive certain milestone payments from Solentix upon successful development by either Abgenix or Solentix. With the acquisition, Solentix plans to hire certain Gliatech scientists to support its internal research and development activities. "We believe this proposed acquisition is a positive development for all parties," stated Clark E. Tedford, Ph.D., Solentix President and CEO. "Solentix will add a new technology platform to its portfolio and that will provide for additional financing opportunities for this new venture." As part of the agreement, Solentix also will assist in the closure of the Gliatech estate and provide further support to the sale and transfer of the other Gliatech assets that remain in the estate or have recently been sold. "The goal is to maximize value of the Gliatech assets and allow for satisfactory transition to the new buyers," added Dr. Tedford. "Solentix also will benefit in being able to establish operations on an accelerated timeline to create an exciting new biotech opportunity for Northeast Ohio."<< snip Cheers, Tuck