For immediate release: May 3, 2006
VANCOUVER - Inex Pharmaceuticals Corporation ("INEX"; TSX: IEX) reported today as part of its first quarter 2006 financial results continued progress towards completing the spin-off of its Targeted Immunotherapy platform and product candidates into a new public company and completing a partnering transaction for its Targeted Chemotherapy products.
Targeted Immunotherapy Spin-Out
On January 26, 2006, INEX shareholders voted in favour of spinning out the Targeted Immunotherapy assets into a new public company, called Tekmira Pharmaceuticals Corporation (“Tekmira”). INEX needs to receive certain regulatory and court approvals before the spin-out can be completed. On May 18, 2006 the British Columbia Court of Appeal will hear appeals from INEX and from Stark Trading and Shepherd Investments Ltd. (collectively “Stark”). INEX is appealing the Supreme Court of British Columbia’s (the “Court”) ruling that provided the holders of INEX’s outstanding convertible promissory notes the right to a separate vote on INEX’s spin-out plan. Stark is appealing the Court’s ruling that the spin-out of Tekmira can take place given the terms of the convertible promissory notes and the Court’s decision to dismiss Stark’s bankruptcy petition. After the appeal hearing is completed, INEX will move forward to complete the spin-out of Tekmira as quickly as possible.
Stark is the majority holder of certain promissory notes issued by Inex International Holdings, a subsidiary of INEX. The promissory notes are not due until April 2007 and can be repaid in cash or in shares, at INEX’s option, at maturity.
Targeted Chemotherapy Partnership
On March 17, 2006, INEX announced that it had signed a Letter of Intent to license three products from its Targeted Chemotherapy pipeline to Hana Biosciences, Inc. (“Hana”; Nasdaq: HNAB). Upon closing of the transaction, Hana will pay INEX US$11.5 million in an up-front payment, consisting of cash and Hana shares. INEX will receive an additional US$30.5 million if development and regulatory milestones are achieved and will also receive royalties on product sales. Hana will be responsible for all future development of the three products including all future expenses. The Hana transaction is expected to close during the second quarter of 2006.
To view the full press release, including Financial Results and Statements, click here.
