As part of its restructuring plan, ProMetic has been preparing a potential IPO for its UK subsidiary, ProMetic BioSciences Ltd (PBL) on the London Stock Exchange's AIM. However, a number of events that significantly impacted PBL's revenue growth and value have affected the overall strategy and timing regarding this IPO. These positive events include: the CE mark - European approval of the P-Capt TM filter which will be commercially launched by MacoPharma in early 2007, favorable changes in the competitive landscape for the prion filter business opportunity, followed by a recent flow of agreements and forthcoming developments with prominent pharmaceutical companies.
"Because PBL is expected to be cash neutral with projected revenues in excess of $15 Million in 2007, it makes more business sense for the benefit of our shareholders not to do an IPO at this point in time", stated Pierre Laurin, President and CEO of ProMetic, adding: "If and when reconsidered, it could be done at a much higher value. As milestones are being systematically achieved, and revenue finally materializing, the market will realize the value of PBL's proven technologies and of past investment decisions."
ProMetic has invested over the past few years in 2 strategic joint-projects with the American Red Cross, both of which have now reached commercial status. Considerable investments have also been made in the manufacturing infrastructure enabling PBL to supply a growing number of clients and licensees. This is further evidenced by PBL's most recent string of announcements including agreements with Novozymes Delta, Pfizer and Novartis, as well as the expansion of existing programs such as the one with Octapharma.
In addition, ProMetic's US subsidiary, ProMetic BioTherapeutics Inc. (PBT) established in July 2006 to commercialize the proprietary plasma manufacturing processes, also projects to be cash flow neutral by the end of 2007. This results from existing and forthcoming licensing agreements with established plasma industry players.
Additionally, ProMetic BioSciences Inc. (PBI), has filed a Clinical Trial Application with Health Canada for the expansion of the PBI-1402 clinical program to include the treatment of anemic patients with Chronic Kidney Disease (CKD). This trial is designed to investigate the effect of PBI-1402 in CKD patients who remain anemic despite treatment with high doses of erythropoietin (EPO). Subject to regulatory approval, patient enrollment would be expected to commence early in Q1 2007.
Moreover, on November 3 2006, in order to improve its ability to further its growth and implement strategic initiatives, the Company filed and obtained approval from the Autorite des Marche financiers (AMF), acting as principal regulator, for the use of a CDN $42 million short form base shelf prospectus or "shelf registration" with the securities regulators in each Canadian province. The shelf registration provides the Company with the flexibility to periodically issue subordinate voting shares in one or more tranches during the 25-month period in which the shelf prospectus remains valid. The securities may be issued at the Corporation's discretion, with an aggregate offering amount not to exceed CDN $42 million in value. In the event the Company decides to offer securities under the base shelf prospectus, it will prepare and distribute a Prospectus Supplement that will include the specific terms of the designated securities. The terms of such future offerings, if any, would be established at the time of such offering, and unless otherwise specified in a Prospectus Supplement, the net proceeds of the offerings will be used by the Company as working capital and for general corporate purposes. Copies of the base shelf prospectus may be obtained by accessing the Company's SEDAR file at www.sedar.com.
The information contained in this news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of these securities in any province or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such province or jurisdiction.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary Mimetic Ligand TM enabling technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of inflammation and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic "drug-like" protein mimetics. Headquartered in Montreal (Canada), ProMetic has R&D and manufacturing facilities in the UK and business development activities in the US, Europe, Asia and MENA countries (Middle East and North Africa). Additional information is available on the Company's web site at www.prometic.com.
About ProMetic BioSciences Ltd
Using its unique and proprietary Mimetic Ligand TM technology, PBL specializes in the development and manufacture of robust affinity separation materials which provide very high levels of purification. This is achieved by use of small chemical affinity ligands designed to bind a target biomolecule specifically and reversibly. In view of their use for the production of therapeutics, ProMetic's affinity products are manufactured to strict quality standards at PBL's GMP-compliant manufacturing facility on the Isle of Man, which completed a pounds sterling 1.5 million expansion in 2005. PBL also operates an R&D laboratory located on the Cambridge Science Park, United Kingdom.
Forward Looking Statements
This press release contains forward-looking statements about ProMetic's objectives, strategies and businesses that involve risks and uncertainties. These statements are "forward-looking" because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, the Company's ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of the Company to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 17 of the Company's Annual Information Form for the year ended December 31, 2005, under the heading "Risk Factors". As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason.
Contact: Contacts: ProMetic Life Sciences Inc. Pierre Laurin President and CEO 514-341-2115 p.laurin@ProMetic.com ProMetic Life Sciences Inc. Anne Hodgkinson Communications Manager 514-341-2115 ext.2234 a.hodgkinson@ProMetic.com
Source: ProMetic Life Sciences Inc.
