EVANSTON, Ill., July 24 /PRNewswire-FirstCall/ -- Northfield Laboratories
Inc. (Nasdaq: NFLD), a leading developer of an oxygen-carrying blood
substitute for trauma and elective surgery situations, announced today that
Richard E. DeWoskin, one of the Company's founders and its Chairman and Chief
Executive Officer, will resign as a director and officer of the Company
effective today. Steven A. Gould, M.D., also one of the Company's founders
and Northfield's current President and a director of the Company, will become
Northfield's Chairman and Chief Executive Officer.
Mr. DeWoskin commented, "When I helped found Northfield, I never
envisioned that my tenure as Chairman and Chief Executive Officer would be
this long. Over the years, as a team, we have produced many scientific and
clinical accomplishments and I couldn't be more proud of our performance.
However, as changes occur in our business environment, I now feel that we at
Northfield need to view our continuing development from a different
perspective. I believe that this will be best accomplished with a new and
very capable hand at the tiller. As we are in the process of electing a slate
of directors, this is a logical time for me to step down and facilitate a
smooth transition. I will continue my enthusiastic support of Northfield and
am confident that the Company will be successful in reaching the goals we have
all been pursuing."
Dr. Gould said, "This is a remarkable day in the history of Northfield.
Richard has devoted his professional career to the development of a human
blood substitute and has been the driving force behind bringing Northfield's
PolyHeme(TM) blood-substitute product to its current stage of development.
When I joined the Company on a full-time basis a number of years ago, Richard
and I began to discuss a plan for succession. This transition is an
indication of the growth and maturity of our organization. We are grateful
for all of Richard's efforts, and wish him well in his future endeavors." Dr.
Gould added that Mr. DeWoskin has agreed to continue to assist the Company by
providing consulting services in connection with certain scientific,
regulatory, manufacturing, intellectual property and other matters.
Dr. Gould stated, "As Chairman and Chief Executive Officer, I intend to
aggressively pursue a number of issues that are essential for our future
success and that will, over the long term, increase shareholder value." Dr.
Gould outlined the following as his goals:
-- continue to work with the Food and Drug Administration to resolve as
quickly as possible the status of Northfield's Biologics License
Application, or BLA, and move forward with the regulatory approval
process for PolyHeme(TM);
-- raise additional capital;
-- secure a partnership with a major pharmaceutical company; and
-- increase Northfield's profile in the scientific and investment
communities.
"Based on our discussions with the FDA, we have learned that many of the
agency's concerns are focused on the perceived broad nature of the proposed
indication for use of the product, the validity of the historical control
group, and the actual trial design itself. The agency is concerned with the
possibility that PolyHeme might be used in situations other than those
involving unplanned, life-threatening blood loss where no alternative
treatment is available.
"Our dialogue with the FDA has been productive and instructive for both
sides. We believe that the FDA's stated concerns will be effectively
addressed and that we will reach a successful conclusion to this process.
Certainty regarding our FDA regulatory status is essential to positioning
ourselves to move rapidly and effectively to raise funds in the capital
markets once the climate on Wall Street becomes more favorable, and to enhance
our ability to secure a world-class partner on attractive terms for our
shareholders."
Dr. Gould added, "In the future, we will strive to expand our
communications with our current shareholders and potential new investors
regarding important developments relating to Northfield's progress toward its
goals. We also plan to increase our profile and enhance our stature in both
the scientific and investment communities. I expect a smooth transition in
management and believe that with the continuing support of our employees and
investors, we will be successful in bringing PolyHeme to the market."
As a result of his new position and its responsibilities, Dr. Gould stated
that the company will initiate a search for a President and for an individual
to head medical affairs.
Northfield also announced that its 2002 annual meeting of stockholders
will be held on Friday, September 13, 2002, at 10:00 a.m. CDT at its executive
offices in Evanston, Illinois. After the completion of the official business
matters, the annual business update will be presented. The live proceedings
will be simultaneously broadcast on the Internet, including a live question
and answer session.
Stockholders of record as of July 22, 2002 will be entitled to vote at the
annual meeting. Northfield's board of directors, based on the recommendation
of the independent directors serving on the board's nominating committee, has
nominated Steven A. Gould, M.D., Gerald S. Moss, M.D., Bruce S. Chelberg, Jack
Olshansky and David A. Savner, each of whom currently serves as a Northfield
director, for election at the annual meeting.
The nominating committee of Northfield's board of directors has also
recommended that the board be expanded to include two new members, John F.
Bierbaum and Paul M. Ness, M.D. Mr. Bierbaum is Executive Vice President of
PepsiAmericas Inc., Northfield's largest stockholder. In this capacity, he
directs corporate growth and investor relations. Previously, he was Senior
Vice President, Chief Financial Officer and Director of PepsiAmericas, Inc,
and before that, served as Vice President and Chief Financial Officer of
Pohlad Companies. Mr. Bierbaum is a certified public accountant.
Dr. Ness is Professor of Pathology, Medicine and Oncology at the Johns
Hopkins University School of Medicine and has been Director of the Transfusion
Medicine Division since 1979. He is the Scientific Director of the American
Red Cross Blood Services Greater Chesapeake and Potomac Region. He has served
on the Blood Products Advisory Committee of the FDA as well as on numerous FDA
advisory panels. Dr. Ness is a past president of the American Association of
Blood Banks.
The seven director nominees proposed by Northfield include four
independent directors.
Statements in this release that are not strictly historical are "forward-
looking" statements that are made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks, which may cause the company's
actual results in the future to differ materially from expected results.
These risks include, among others: competition from other blood substitute
products; the company's ability to obtain regulatory approval to market
PolyHeme commercially; the company's and/or its representative's ability to
successfully market and sell PolyHeme; the company's ability to manufacture
PolyHeme in sufficient quantities; the company's ability to obtain an adequate
supply of raw materials; the company's ability to maintain intellectual
property protection for its proprietary product and to defend its existing
intellectual property rights from challenges by third parties; the
availability of capital to finance planned growth; and the extent to which the
hospitals and physicians using PolyHeme are able to obtain third-party
reimbursement, as described in the company's filings with the Securities and
Exchange Commission.
Northfield, the members of its board of directors and certain of its
executive officers may be deemed to be participants in the solicitation of
proxies in connection with Northfield's 2002 annual meeting of stockholders.
Information regarding each participant will be included in the proxy statement
that will be filed by Northfield with the Securities and Exchange Commission
in connection with the annual meeting. Shareholders are urged to read the
proxy statement carefully when it becomes available because it will contain
important information. Northfield's proxy statement will be available without
charge at the SEC's Internet web site at http://www.sec.gov. In addition, Northfield
will provide copies of its proxy statement without charge upon request.
Requests for copies of the proxy statement should be directed to Northfield at
(847) 864-3500.
Visit the Northfield website at: http://www.northfieldlabs.com .
SOURCE Northfield Laboratories Inc.
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Related links:
http://www.northfieldlabs.com
CONTACT:
Steven A. Gould, M.D., Chief Executive
Officer of Northfield Laboratories, +1-847-864-3500, or
Investors, Bill Schmidle, +1-312-640-6753, or Media, Cindy
Martin, +1-312-640-6741, both of FRB Weber Shandwick
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