WALTHAM, Mass., Aug. 15 /PRNewswire-FirstCall/ - AltaRex Corp.
(TSE: AXO, OTC: ALXFF.PK) announced today that, pursuant to the terms of its
collaboration with United Therapeutics Corporation of Silver Spring, Maryland,
United Therapeutics has exercised a warrant issued upon the execution of the
collaboration for the purchase of 3.25 million common shares of AltaRex for a
total purchase price of U.S. $1,625,000. Further, United Therapeutics has
purchased a debenture in the principal amount of U.S. $875,000, of which U.S.
$441,690 will automatically convert into 883,380 common shares of AltaRex on
August 20, 2002. AltaRex also announced that, as previously disclosed, the
Company will issue 100,000 common shares to United Therapeutics upon the
automatic conversion on August 21, 2002 of the initial debenture in the
principal amount of U.S. $50,000 issued to United Therapeutics on April 17,
2002. After giving effect to the issuance of the common shares to be issued
upon exercise of the warrant and upon conversion of the debentures described
above, the Company understands that United Therapeutics will hold
approximately 19.9% of the outstanding common shares of AltaRex.
(Logo: http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO )
All of the securities described in this press release have been issued on
a private placement basis. United Therapeutics has the right to purchase
19.9% of certain future financings of AltaRex.
The warrant exercise and debenture purchase were made pursuant to the
terms of the collaboration between AltaRex and United Therapeutics under which
AltaRex granted an exclusive worldwide license to United, with the exception
of rights retained by AltaRex to the European Union and to certain other
countries in accordance with existing commercialization agreements, for the
development of five monoclonal antibodies that activate the immune system to
treat cancer. The strategic collaboration is centered on OvaRex(R)
(oregovomab) antibody for the treatment of metastatic ovarian cancer.
United Therapeutics is conducting a comprehensive review of the OvaRex(R)
program for a period of up to 240 days and has assumed the cost of clinical
trials, manufacturing and other development expenses as of the effective date
of the agreement of April 17, 2002. Fourteen former AltaRex employees have
transferred to a wholly-owned subsidiary of United Therapeutics. Under the
collaboration, United Therapeutics had the right to exercise the warrant and
to purchase the debenture until August 20, 2002.
In addition to the collaboration with United Therapeutics, AltaRex is
focusing on other existing cancer programs with its Southern European partners
for OvaRex(R) MAb and with Epigen for human carcinoma antigen. AltaRex is
also seeking new collaborations to develop and commercialize its oncology
pipeline in Northern Europe and to extend its platform technology to new
therapeutic areas in partnered discovery programs.
AltaRex Corp. is focused on the research, development and
commercialization of antigen-targeted antibody-based therapies for life
threatening diseases utilizing monoclonal antibodies as immunotherapeutic
agents.
For additional information about AltaRex, visit the Company website at
http://www.altarex.com.
This news release contains forward-looking statements that involve risks
and uncertainties, which may cause actual results to differ materially from
the statements made. For this purpose, any statements that are contained
herein that are not statements of historical fact may be deemed to be
forward-looking statements. Without limiting the foregoing, the words
"believes," "anticipates," "plans," "intends," "expects" and similar
expressions are intended to identify forward-looking statements. Such risks
and uncertainties include, but are not limited to our need for capital; the
risk that the Company can not raise funds on a timely basis on satisfactory
terms or at all; the need to obtain and maintain corporate alliances, such as
the alliance with United Therapeutics, and the risk that the Company cannot
establish corporate alliances on a timely basis, on satisfactory terms, or at
all; changing market conditions; uncertainties regarding the timely and
successful completion of clinical trials and patient enrollment rates,
uncertainty of pre-clinical, retrospective, early and interim clinical trial
results, which may not be indicative of results that will be obtained in
ongoing or future clinical trials; whether the Company and/or its
collaborators will file for regulatory approval on a timely basis;
uncertainties as to when, if at all, the FDA will accept or approve regulatory
filings for the Company's products; the need to establish and scale-up
manufacturing processes, uncertainty as to the timely development and market
acceptance of the Company's products; the risk that the claims allowed under
any issued patent owned or licensed by the Company, will not be sufficiently
broad to protect the Company's technology, that any patents issued to the
Company will not be sustained if challenged in court proceedings or otherwise
or that third parties will be able to develop products or processes that do
not infringe valid patents owned or licensed by the Company, and other risks
detailed from time-to-time in the Company's filings with the United States
Securities and Exchange Commission and Canadian securities authorities. The
Company does not assume any obligation to update any forward-looking
statement.
THE TORONTO STOCK EXCHANGE HAS NOT APPROVED OR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN.
SOURCE AltaRex Corp.
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Related links:
http://www.altarex.com
Photo Notes:
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Company News On-Call:
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CONTACT:
Trudy Chimko, Human Resources & Corporate
Communications of AltaRex Corp., +1-781-672-0138,
investor@altarex.com
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