Amended Agreement Provides for Manufacturing Cost and Mark-up Plus $50
Per Unit Payment for First One Million Doses of REMUNE(R)
CARLSBAD, Calif., July 2 /PRNewswire-FirstCall/ --
The Immune Response Corporation (Nasdaq: IMNR) today announced a significant
restructuring of its REMUNE(R) license and collaboration contract with Trinity
Medical Group USA, Inc. (OTC Bulletin Board: TMGU).
The amended contract provides for manufacturing costs and mark-up plus
$50.00 per unit to be paid to Immune Response, which obligation would expire
upon the earlier of the first one million doses of REMUNE(R) purchased by the
Trinity Medical Group or December 31, 2007. As consideration for the
increased purchase price to be paid to Immune Response, Trinity Medical Group
will receive shares of Immune Response common stock and a waiver of the final
$5 million common stock purchase obligation, which would have applied in the
event of the optional technology transfer of REMUNE(R) manufacturing rights in
Trinity Medical Group's licensed territory.
Trinity Medical Group will receive four million shares of restricted
Immune Response common stock immediately and up to another three million
shares upon the occurrence of certain sales milestones. All of the restricted
shares are subject to registration rights. If REMUNE(R) is approved for use
by the Thai government, Trinity Medical Group will be obligated to purchase
two million shares of common stock in exchange for a $5 million payment.
Under the terms of the original agreement, Trinity Medical Group would have
been obligated to purchase 333,333 shares of Immune Response stock in exchange
for a $5 million payment upon Thai government approval.
"This is a win-win situation for both companies and concludes an ongoing
effort to improve both companies' position in marketing and distributing
REMUNE(R) throughout Southeast Asia," said Dr. Dennis Carlo, president and
chief executive officer of The Immune Response Corporation.
The previous supply contract with Trinity Medical Group, dating back to
1995, called for Immune Response to receive the unit cost of production plus
an agreed upon mark-up percentage, which would have resulted in significantly
less revenues than the just-completed agreement.
Co-founded by medical pioneer, Dr. Jonas Salk and based in Carlsbad,
California, The Immune Response Corporation is a biopharmaceutical company
developing immune-based therapies designed to treat HIV, autoimmune diseases
and cancer. The Company also develops and holds patents on several
technologies that can be applied to genes in order to increase gene expression
or effectiveness, making it useful in a wide range of therapeutic applications
for a variety of disorders. Company information also is available at
http://www.imnr.com .
This news release contains forward-looking statements. Actual results
could vary materially from those expected due to a variety of risk factors,
including, but not limited to, whether REMUNE(R) will be approved in Thailand,
whether Trinity Medical Group will purchase any shares from the Company,
whether the Company will receive any revenues from Trinity for the sale of
REMUNE(R), whether the Company will successfully raise proceeds from financing
activities, that Transamerica will not in the future declare that the Company
is in default of its debt arrangements, accelerate the Company's debt and
seize its assets, whether data generated from previous trials can be
replicated in future clinical trials, whether clinical trials will be
successfully concluded, whether REMUNE(R) will be approved for marketing or be
successfully commercialized and whether the Company will be able to obtain
additional financing. Those factors are discussed more thoroughly in The
Immune Response Corporation's SEC filings, including but not limited to its
report on Form 10-K for the year ended December 31, 2001 and report on Form
10-Q for the quarter ended March 31, 2002. The Company undertakes no
obligation to publicly release the result of any revisions to these forward-
looking statements, which may be made to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.
REMUNE(R) is a registered trademark of The Immune Response Corporation.
SOURCE The Immune Response Corporation
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Related links:
http://www.imnr.com
CONTACT:
media, James Lee of The Lee Strategy Group,
+1-310-229-5771, or fax, +1-310-229-5772, jlee@leestrategy.com,
for The Immune Response Corporation; or investors, Kathy Lane of
The Immune Response Corporation, +1-760-771-2236, or fax,
+1-760-771-2140, info@imnr.com
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