VANCOUVER, Aug. 30 /PRNewswire-FirstCall/ - Inex Pharmaceuticals Corporation announced today that its partner Hana Biosciences has enrolled the first patient in a Phase 1 human clinical trial evaluating the safety, tolerability and preliminary efficacy of INX-0125 (sphingosomal vinorelbine) as a treatment for advanced solid tumors.
Commencement of patient dosing for this trial triggers a US$1.0 million milestone payment from Hana to INEX as part of the agreement announced May 8, 2006 in which Hana licensed three products from INEX’s Targeted Chemotherapy pipeline, including INX-0125.
Timothy M. Ruane, President and Chief Executive Officer of INEX, said Hana’s progress on INX-0125 in the three months since the licensing agreement was announced is a positive indication for the future of the relationship. “We’re pleased that Hana has been able to advance INX-0125 to a phase 1 clinical trial as quickly as they have. We will continue to support them as they move our products through development.”
After INEX pays third-party obligations of approximately US$200,000, the Company will forward the remainder of the Hana milestone payment to former INEX noteholders as provided in the agreement with noteholders announced June 20, 2006. This payment will reduce INEX’s future contingent payments to the noteholders from US$24.4 million to US$23.6 million.
In the June 20, 2006 announcement, INEX reported that it had signed a definitive note purchase and settlement agreement with all of the holders of certain convertible promissory notes issued by a wholly-owned subsidiary of INEX and guaranteed by INEX. The notes were owned by institutional investors.
Future payments to the former noteholders are contingent on INEX receiving milestone or royalty payments from Hana and other consideration received by INEX should it complete the corporate reorganization that will be voted upon by INEX shareholders September 20, 2006. The form of corporate reorganization contemplated in the note purchase agreement would transfer all of INEX’s pharmaceutical assets to its subsidiary, Tekmira Pharmaceuticals Corporation.
All of the shares in Tekmira would be distributed pro rata to INEX shareholders allowing INEX to raise additional capital in connection with the acquisition of a new business and this capital would be transferred to the noteholders. If INEX does not receive any future proceeds from Hana or from the contemplated corporate reorganization then it will not owe the noteholders any additional consideration or payments. No interest will accrue on the amount owed to the noteholders.
About INEX
INEX is a Canadian biopharmaceutical company developing and commercializing proprietary drugs and drug delivery systems to improve the treatment of cancer. Further information about INEX and this news release can be found at www.inexpharm.com.
Forward Looking Statements
There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words “believes,” “may,” “plans,” “will,” “estimate,” “continue,” “anticipates,” “intends,” “expects,” and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, Inex’s stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market Inex’s products, the ability to protect its intellectual property and dependence on collaborative partners. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.
INEX’s common shares are traded on the Toronto Stock Exchange under the trading symbol “IEX”.
CONTACT: Inex Pharmaceuticals Corporation: Investors: Ian Mortimer, Vice President, Finance and Chief Financial Officer, Phone: (604) 419-3200, Email: info@inexpharm.com, Website: www.inexpharm.com; Media: Don Bradley, James Hoggan & Associates Inc., Phone: (604) 739-7500, Email: dbradley@hoggan.com
Inex Pharmaceuticals Corporation
CONTACT: Inex Pharmaceuticals Corporation: Investors: Ian Mortimer, VicePresident, Finance and Chief Financial Officer, Phone: (604) 419-3200,Email: info@inexpharm.com, Website: www.inexpharm.com; Media: Don Bradley,James Hoggan & Associates Inc., Phone: (604) 739-7500, Email:dbradley@hoggan.com
