For immediate release: September 11, 2006
VANCOUVER - Inex Pharmaceuticals Corporation ("INEX"; TSX: IEX) announced today that it has become aware of a statement of claim filed by Protiva Biotherapeutics Inc. (“Protiva”) in California Superior Court. Protiva, a private biotechnology company, was spun-out from INEX in 2001 along with certain intellectual property rights relating to gene therapy technology. INEX holds a minority interest in Protiva.
Protiva’s statement of claim in the California suit alleges that INEX interfered in certain Protiva contractual relationships. This claim appears to be substantively the same as one of the allegations made in the suit filed by Protiva in British Columbia Supreme Court in March 2006. INEX filed a statement of defence and counterclaim against Protiva in May 2006 and copies of these documents can be accessed on the INEX website at www.inexpharm.com.
The California suit also contains claims against INEX and Timothy M. Ruane, INEX’s President and CEO, alleging defamation in certain communications made to Protiva’s Directors and Sirna Therapeutics, Inc. Sirna Therapeutics has sued Protiva for breach of contract and Protiva’s CEO, Mark Murray, for fraud and misrepresentation. Protiva has countersued Sirna Therapeutics.
Central to the dispute with Protiva are the rights to certain drug delivery technology for the delivery of a class of drugs called oligonucleotides, including small interfering RNA (siRNA). As part of contractual agreements that created Protiva in 2001, INEX retained all rights to the delivery of oligonucleotides, including siRNA. INEX currently has a research collaboration ongoing with Alnylam Pharmaceuticals, Inc., a leader in the field of siRNA.
Timothy M. Ruane, President and Chief Executive Officer of INEX, said INEX disputes all claims made by Protiva and intends to vigorously enforce its rights. “We believe the Protiva claims have no merit and we are confident of our contractual and intellectual property rights under our 2001 agreements that created Protiva. The license granted to Protiva is very specific and does not include the delivery of oligonucleotides, including siRNA.”
INEX is in the process of completing a corporate reorganization that includes spinning out all of the Company’s technology, products, cash and partnerships into Tekmira Pharmaceuticals Corporation (“Tekmira”). Shareholders will vote on the corporate reorganization at a shareholder meeting to be held on September 20, 2006. INEX is in the process of evaluating the ongoing litigation with Protiva with respect to its affect on the closing of the Tekmira transaction.
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 can be found at www.inexpharm.com.
INEX 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.
Contact Information
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
Karen Cook
James Hoggan & Associates Inc.
Phone: 604-739-7500
Email: kcook@hoggan.com
