Important note: Information in this article was accurate in 1995. The state of the art may have changed since the publication date.
PR Newswire - November 27, 1995
"We have brought together a blue ribbon group of Canadian investors," said Seragen President and CEO, George Masters, "and we look forward to working with them."
The Canadian investors, with their contribution of $13.5 million, (CDN) will own 51 percent of the new company and will be granted warrants to purchase 519,033 shares of Seragen, Inc. common stock at $8.79 (U.S.) per share. Seragen, Inc., with its contribution of the technology and prior laboratory and clinical development, will own 49 percent of the new company.
Seragen Biopharmaceuticals will conduct research and development and clinical trials of Seragen's proprietary fusion toxin products in Canada. The new company will also market and receive royalties from sales of Seragen products in Canada for the applications Seragen has retained under its prior agreements with Eli Lilly and Company, Seragen's partner for the development of fusion toxins for cancer.
"We have a great opportunity here to take advantage of the attractive economic and scientific environment for our work in Canada, particularly in Quebec," stated Masters. "Our new Canadian affiliate will bear a portion of the costs of our clinical trials for HIV and psoriasis, thereby relieving Seragen of up to $5.3 million (CDN) of costs which we would otherwise have incurred. Also, Seragen Biopharmaceuticals could receive significant tax rebates on qualifying R & D -- on the order of $2-3 million over the next several years."
"Our initial plans are to expand our Phase III clinical trials in cutaneous T-cell lymphoma to several Canadian sites. The IND (Investigational New Drug application) was recently approved by Canada's Health Protection Branch, and one Canadian site in Toronto has already been initiated," Masters added. "Next we plan to conduct a Phase II trial in HIV infection and possibly part of a Phase III trial in psoriasis in Canada."
Using a proprietary technology, Seragen has created a pipeline of unique receptor-targeted therapeutic products known as fusion toxins. Fusion toxins consist of a toxin fragment genetically linked to a hormone or growth factor which targets specific receptors on the surface of disease-causing cells.
The company's primary focus is in the fields of cancer and dermatology. Phase III clinical trials of IL-2 Fusion Toxin, co- sponsored by Seragen and Eli Lilly and Company, have begun for cutaneous T-cell lymphoma. Twenty-three sites have been initiated to date. Seragen's Phase II trial in psoriasis is under way. In addition, Phase I/II trials of IL-2 Fusion Toxin have been conducted for lymphoma and HIV infection. Planning is in progress for Phase II studies in these indications. A second agent, EGF Fusion Toxin, has completed Phase I/II clinical trials for solid tumors.
CONTACT: Investor Relations/Corporate Communications, Helen Maslocka, Vice President, or Lora Maurer, Project Manager of Seragen, 508-435-2331/ 09:00 EST
Copyright (c) 1995/PR NewsWire. Reproduced with permission. Reproduction of this article (other than one copy for personal reference) must be cleared through the Permissions Desk, PR Newswire, 810 Seventh Avenue, New York, NY 10019.
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