Hemosol (NASDAQ:HMSL)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Hemosol Charts. Click Here for more Hemosol Charts.](/p.php?pid=staticchart&s=N%5EHMSL&p=8&t=15)
ProMetic and Hemosol Announce Strategic Alliance to Implement New Plasma
Separation Technology
MONTREAL, Quebec, December 4 /PRNewswire/ -- ProMetic Life Sciences Inc.
(TSX: PLI) announces that its wholly owned
UK subsidiary ProMetic BioSciences Ltd. and Hemosol Inc. (TSX: HML; Nasdaq:
HMSL ) signed an important strategic agreement to implement the novel
ProMetic/American Red Cross plasma protein purification process ("Cascade")
for North America.
Key Highlights of the Strategic Agreement:
- North American Rights in Cascade with performances thresholds licensed
to Hemosol in consideration for C$18 million plus royalties of 5 to 8%
on sales of products.
- The commitment in principle of the American Red Cross to supply raw
material to Hemosol for processing and the subsequent re-purchase from
Hemosol of specific therapeutic products isolated using the Cascade.
- The opportunity to significantly increase yields of next generation
therapeutic plasma proteins including IgG, AAT, Factor VIII and
Fibrinogen which are in great demand as current supply does not meet
worldwide needs; The total worldwide market sales amounted US $5.6
billion in 2002, expected to attain US $6 billion in 2005.
- Agreement structured to capitalize on ProMetic proven proprietary
technology and Hemosol's C$90 million blood protein processing plant to
provide short-term revenue generation and joint business development
activities.
The plasma-derived protein industry represents annual sales of over US$
5.6 billion. According to experts, the future of this industry lies in its
ability to build more efficient facilities, to access technology capable of
improving yields and to develop new and novel therapeutics (Plasma
proteomics). The ProMetic/ARC Cascade process is designed to meet these
opportunities.
Through this agreement with Hemosol, ProMetic is now well advanced in its
project to have the first facility of this type based in Canada. An agreement
with the American Red Cross (ARC) to provide 500,000 litres of plasma for
processing in this facility will provide the economics to make this project a
reality in Canada. "After many attempts by various public and private
organizations over the years, we are proud to have finally pooled all the
elements needed to provide Canada with this unique plasma fractionation
facility," noted Pierre Laurin, President and Chief Executive Officer of
ProMetic. "This alliance will offer important benefits to all three
organizations, as well as to all North Americans since this plant will
provide life saving medicines at lower costs, in accordance with required
safety measures".
The ProMetic/Hemosol alliance will also generate short-term revenues for
both companies through manufacturing contracts for other plasma fractionation
companies and providing development work to ProMetic's other licensees
worldwide.
Plasma-Derived Proteins - A Huge Unmet Market
Plasma protein fractionation is by far the largest global therapeutic
protein industry. Therapeutic products derived from plasma are used to treat
more than one million patients each year, namely as example for immune
deficiency conditions, haemophilia and burns, and amounted US $ 5.6 billion
in sales in 2002, expected to grow 8% over the next 3 years. More than 25
million litres of plasma are processed worldwide annually, producing over 500
metric tons of human serum albumin (hSA) and over 50 tons of IgG
(immunoglobulins) per year.
Many developed countries have experienced shortages of plasma-derived
products in the past three years, mainly due to an increase in clinical
demand as well as safety measures taken to prevent the theoretical risk of
transmitting infectious diseases such as Creutzeldt-Jacob Disease.
Key markets that do not yet have their own plasma processing facilities
and rely on external sources of supply include Canada, Latin America, the
Middle East, India, Africa and several East European and Far Eastern
countries.
Yet the needs are so extensive that fractionation companies are unable to
meet the demand. "Global demand is significantly greater than the current
level of supply, which is limited by the availability of plasma and by
worldwide fractionation capacity. With the American Red Cross' supply and
this new fractionation facility, we are killing two birds with one stone,"
stated Chris Lamb, Vice-President and Chief Operating Officer, American Red
Cross, Plasma Services.
ARC and ProMetic joined forces for a second time in January 2003 to
combine their respective technologies to improve the current yields and
purity of products from plasma compared to industry standards. The novel
ProMetic/ARC process is actually a combination of individually proven steps,
presented in a unique sequence that is referred to as "the cascade
purification process". Its use allows for the recovery of the proteins
directly from plasma, further improving the extraction yield.
"This is an important milestone for our alliance with the American Red
Cross. The ProMetic/ARC alliance anticipates licensing other countries to
allow them to build similar facilities. The ability to supply other licensees
with GMP material manufactured in Hemosol's facility will accelerate the
construction and validation of these facilities," concluded Mr. Laurin.
Hemosol has recently built a 130,000-square-foot manufacturing facility
to handle the commercial production of blood proteins. Located near the
Pearson airport in Mississauga, Ontario, this $90 million facility is well
suited to accommodate the new process.
"All our past investments in manufacturing infrastructure and expertise
in handling blood derived-products will be leveraged through this agreement
to provide a significant upside to our shareholders," stated Lee Hartwell,
President and Chief Executive Officer of Hemosol.
"ProMetic and Hemosol's business models are perfectly compatible", added
Mr Laurin. "ProMetic's is to license worldwide to different parties that wish
to acquire the ability to become self sufficient in the provision of next-
generation plasma-derived therapeutics or to improve their manufacturing
yield (output). The current agreement between ProMetic and Hemosol draws on
each party's respective strengths provides a better prospect of short-term
revenue generation and motivates joint business development activities."
Conference Call
Hemosol, ProMetic and the American Red Cross will host a conference call
to discuss this strategic alliance at 10 a.m. today, December 4, 2003 (DIAL
IN NUMBER: +1-800-273-9672 or 416-695-5806, REFERENCE NUMBER: 1508631; TAPED
REPLAY: +1-800-408-3053 OR 416-695-5800). Participating to the call will be
Messrs Lee Hartwell, President & CEO Hemosol Inc., Pierre Laurin, President &
CEO ProMetic BioSciences Ltd., and Chris Lamb, Chief Operating Officer,
American Red Cross Plasma Services.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. is an international biopharmaceutical company
with headquarters in Montreal (Quebec), additional facilities in the U.K. and
the USA. ProMetic specializes in research, development, manufacture and
marketing of a variety of commercial applications from its proprietary
platform technologies, which are used in the development of therapeutics, the
elimination of pathogens, proteomics and large-scale drug purification.
www.prometic.com .
About Hemosol Inc.
Hemosol is a biopharmaceutical company focused on the development and
manufacturing of biologics, particularly blood-related proteins. The Company
has a broad range of novel therapeutic products in development, including
HEMOLINK(TM) (hemoglobin raffimer), an oxygen therapeutic designed to rapidly
and safely improve oxygen delivery via the circulatory system. Hemosol also
is developing additional oxygen therapeutics, a hemoglobin-based drug
delivery platform to treat diseases such as hepatitis C and cancers of the
liver, and a cell therapy program initially directed to the treatment of
cancer. Hemosol intends to leverage its expertise in manufacturing blood
proteins and its state-of-the-art Meadowpine manufacturing facility to seek
additional strategic growth opportunities. www.hemosol.com
Hemosol Inc.'s common shares are listed on The NASDAQ Stock Market under
the trading symbol "HMSL" and on the Toronto Stock Exchange under the trading
symbol "HML".
HEMOLINK is a registered trademark of Hemosol Inc.
This press release contains forward-looking statements that involve risks
and uncertainties, including, but not limited to the Company's ability to
develop, manufacture, and successfully commercialize value-added
pharmaceutical products and to obtain contracts for its products and
services and commercial acceptance of advanced affinity separation
technology. Shareholders are cautioned that these statements are
predictions and these actual events or results may differ materially from
those anticipated in these forward-looking statements.
http://www.renmarkfinancial.com
DATASOURCE: CNW Ltd. (Toronto)
ProMetic Life Sciences Inc.: Pierre Laurin, President & CEO, +1 (514) 341-2115;
Media: Dominic Sicotte, Director of Communications, +1 (514) 341-2115,
www.prometic.com, info@prometic.com; Hofman Communications: Sofie St-Laurent,
Director of Communications, +1 (514) 673-1116; Renmark Financial Communications:
+1 (514) 939-3989; Investor Relations: John Boidman or Sylvain Laberge