Hemosol (NASDAQ:HMSL)
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Hemosol Completes Agreements to License Novel Technology
Company to Produce and Sell Valuable Therapeutic Proteins
TORONTO, June 2 /PRNewswire-FirstCall/ -- Hemosol Corp. (TSX: HML, NASDAQ:
HMSL) today announced that it has entered into definitive license and strategic
alliance agreements with ProMetic Biosciences Inc. a subsidiary of ProMetic
Life Sciences Inc. (TSX: PLI), ("ProMetic") to license the Cascade technology
developed by ProMetic and its strategic partner, the American National Red
Cross ("American Red Cross"), for the separation of valuable therapeutic
proteins from human plasma. Hemosol will integrate the Cascade technology into
its state-of-the-art Meadowpine facility and intends to sell the resulting
products to customers, including the American Red Cross.
"With this new business in place and implementation underway, we have achieved
an important milestone in the development of Hemosol as a leader in the blood
protein sector," said Lee Hartwell, President & CEO of Hemosol. "By adding the
products to be derived from the Cascade technology, Hemosol will have a full
pipeline of therapeutic products that range from early stage research and
development through to those poised to enter the clinic and beyond."
The novel Cascade process integrates proven technologies to significantly
improve the yield and product recovery of valuable therapeutic proteins
isolated from human plasma such as intravenous immunoglobulins (for the
treatment of immune deficiencies), alpha-1 antitrypsin (for the treatment of
hereditary emphysema), anti-hemophilic Factor VIII (for the treatment of
hemophilia) and others. The plasma-derived protein market had annual sales of
over US $5.6 billion in 2002 and this market is expected to increase to US $6
billion in 2005.
"The Cascade process allows a yield recovery far exceeding those obtained by
plasma fractionators worldwide, opening up the door to better access to key
life saving drugs," said Pierre Laurin, President & CEO of ProMetic.
The American Red Cross has committed in principle to supply plasma to Hemosol
and subsequently purchase therapeutic products isolated using the Cascade
technology. Under this license Hemosol will have the right to the Cascade
technology to manufacture therapeutic products from plasma on an exclusive
basis in North America. Exclusivity is subject to establishing and achieving
certain performance thresholds. Under the terms of the strategic alliance
agreement, ProMetic and Hemosol have also agreed to work together to generate
revenues in the short term through technology transfer support and the supply
of clinical trial material to other forthcoming licensees of ProMetic outside
of North America.
Hemosol expects to implement the technology at its Meadowpine facility over the
coming months and be in a position to manufacture and sell clinical material by
the end of 2005. Commercial scale implementation would follow with full scale
commercial revenue anticipated to begin in late 2007 or early 2008. Commercial
sales of therapeutic products manufactured using the Cascade process will
require advance approval of the applicable regulatory agency in each relevant
jurisdiction and are subject to the negotiation and entering into of supply
agreements with ProMetic, and the American Red Cross, as supplier's of
materials used in the Cascade process, and purchase agreements with the
American Red Cross and other customers for the purchase of resulting
therapeutic products.
In addition to the two million shares issued by Hemosol in December 2003,
Hemosol will pay a staged license fee of CDN $15.5 million and issue one
million common shares to ProMetic in exchange for Hemosol's rights to the
Cascade technology. One million common shares and CDN $1.5 million are payable
by Hemosol in connection with the execution of the license and strategic
alliance agreements and further cash payments will be triggered by the
achievement of certain pre-determined milestones. Hemosol will also pay
royalties to ProMetic related to the sale of products manufactured using the
Cascade.
About ProMetic
ProMetic Life Sciences Inc. (TSX: PLI) is an international biopharmaceutical
company with headquarters in Montreal (Quebec), and additional facilities in
the UK and the USA. ProMetic specializes in the research, development,
manufacture and marketing of a variety of commercial applications from its
proprietary platform technologies, which are used in the development of
therapeutics, large-scale purification of biologics and the elimination of
pathogens/viruses.
About Hemosol
Hemosol is a biopharmaceutical company focused on the development and
manufacturing of biologics, particularly blood-related proteins. Hemosol is
leveraging its expertise in manufacturing blood proteins and its
state-of-the-art Meadowpine manufacturing facility to seek additional strategic
growth opportunities. Hemosol 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 is also developing additional oxygen therapeutics,
a hemoglobin-based drug delivery platform to treat diseases such as hepatitis C
and liver cancers, and a cell therapy program initially directed to the
treatment of cancer.
Hemosol'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".
Certain statements concerning Hemosol's future prospects are "forward-looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and other applicable securities legislation.
There can be no assurances that future results will be achieved, and actual
results could differ materially from forecasts and estimates. Important factors
that could cause actual results to differ materially from forecasts and
estimates include, but are not limited to: Hemosol's ability to obtain
regulatory approvals for its products; Hemosol's ability to successfully
complete clinical trials for its products and enter into satisfactory
arrangements for the supply of materials used in its manufacturing operations
and the sale of resulting products to customers; technical, manufacturing or
distribution issues; the competitive environment for Hemosol's products; the
degree of market penetration of Hemosol's products; Hemosol's ability to obtain
sufficient financing to complete clinical development of its products; and
other factors set forth in filings with Canadian securities regulatory
authorities and the U.S. Securities and Exchange Commission. These risks and
uncertainties, as well as others, are discussed in greater detail in the
filings of Hemosol with Canadian securities regulatory authorities and the U.S.
Securities and Exchange Commission. Hemosol makes no commitment to revise or
update any forward-looking statements in order to reflect events or
circumstances after the date any such statement is made.
DATASOURCE: Hemosol Corp.
CONTACT: Jason Hogan, Investor & Media Relations, (416) 361-1331,
800 789-3419, (416) 815-0080 fax, , http://www.hemosol.com/;
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