For immediate release: August 03, 2006
VANCOUVER, BC — Inex Pharmaceuticals Corporation ("INEX"; TSX: IEX) reported today in its second quarter 2006 operating results that the successful negotiation of two partnerships and the settlement of its convertible debt have placed the Company on track to complete its transformation into Tekmira Pharmaceuticals Corporation by the end of September 2006.
Timothy M. Ruane, President and Chief Executive Officer of INEX, said, “Tekmira will be a dynamic new debt-free company, with two significant partnerships and a technology platform focused on developing oligonucleotide drugs to treat cancer.”
INEX announced May 8, 2006 that it had licensed three products from its Targeted Chemotherapy technology platform to Hana Biosciences, Inc. (Nasdaq: HNAB) in return for an up-front payment of US$11.5 million in cash and Hana shares, an additional US$30.5 million as development and regulatory milestones are achieved, plus royalties on product sales. Hana will be responsible for all future development of the three products, including all future expenses. Hana anticipates initiating pivotal phase 3 trials for Marqibo in 2006 and initiating phase 1 clinical trials for INX-0125 (sphingosomal vinorelbine) in 2006 and for INX-0076 (sphingosomal topotecan) in 2007.
INEX announced June 20, 2006 it had signed a definitive note purchase and settlement agreement with all of the holders of the exchangeable and development notes (the “Former Noteholders”) issued by a wholly-owned subsidiary of INEX and guaranteed by INEX. Under the agreement with the Former Noteholders the up-front Hana shares were transferred to the Former Noteholders on June 20, 2006 and INEX has agreed to pay some of the future contingent Hana milestones and royalties to the Former Noteholders.
On July 17, 2006, INEX announced the acceleration of a collaboration signed March 27, 2006 with Alnylam Pharmaceuticals, Inc. (Nasdaq: ALNY). The companies are exploring the use of INEX’s liposomal delivery technology for the systemic delivery of Alnylam’s RNAi therapeutic products. Due to the rapid progress made so far, INEX and Alnylam have decided to move into the next phase of the collaboration, which includes investigating additional gene targets. In conjunction with this progress, Alnylam will make certain payments to INEX totalling approximately US$1.9 million, US$1.0 million of which relates to an option to license INEX’s technology.
The Company announced July 18, 2006 that a shareholder meeting will occur September 20, 2006 to approve the revised Plan of Arrangement to spin out INEX’s pharmaceutical assets into Tekmira. Shareholders of record on August 11, 2006 will be eligible to vote. Meeting materials will be mailed to shareholders in August 2006.
Highlights of the spin-out include transferring to Tekmira:
All of the Tekmira shares will be distributed to INEX common shareholders. INEX’s current management team and employees will join Tekmira in the same positions they occupy at INEX. The Tekmira spin-out is subject to shareholder, regulatory and court approval.
Protiva dispute
Also during the second quarter, INEX announced April 28, 2006 that certain of its directors and officers filed statements of defence in response to a claim filed by Protiva Biotherapeutics Inc. in the Supreme Court of British Columbia. INEX also filed a counterclaim against Protiva.
INEX believes its legal position will prevail and that the litigation will have a negligible impact on the execution of its business plan.
The dispute with Protiva is over the rights to certain drug delivery technology for the delivery of a class of drugs called oligonucleotides, including small interfering RNA (siRNA). Protiva, a private biotechnology company, was spun-out from INEX in 2001 along with certain intellectual property rights to use INEX’s drug delivery technology only for the delivery of gene plasmids in the pursuit of developing gene therapy products. As part of these 2001 agreements that formed Protiva, INEX retained all rights to the delivery of olignucleotides, including siRNA. INEX holds a minority interest in Protiva.
Pursuant to rights INEX has under agreements with Protiva, INEX believes that any technology advancements made by Protiva and its collaborators or by INEX for the delivery of oligonucleotides, including siRNA, are either owned by INEX or should be licensed to INEX on an exclusive, worldwide, paid-up and royalty-free basis.
Product development milestones
The goals for INEX and Tekmira for the second half of 2006 include:
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