WALTHAM, Mass., Nov. 16 /PRNewswire/ -- AltaRex Corp.
(Toronto: AXO, OTC: ALRXF) today announced that the Company has entered into a
memorandum of understanding (MOU) with Dompe Farmaceutici S.p.A. (Milan,
Italy) to form a strategic business alliance for its lead product OvaRex(TM)
MAb for a territory that includes Italy, Spain, Portugal, Switzerland, Austria
and certain Eastern European countries. The MOU grants Dompe the rights of
first offer for additional cancer antibodies in the territory.
(Photo: http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO)
In accordance with the MOU, Dompe has escrowed US$5 million (approximately
C$7.75 million) to purchase AltaRex Common Shares on a private placement basis
at a price of C$0.55 per share, the closing price of AltaRex shares on
Thursday, November 9, 2000. The purchase of shares requires approval by
regulatory authorities in Canada and the shares will be subject to a 180-day
lock-up. This investment represents part of a Company plan to raise C$15
million through the sale of Common Shares. In that regard the Company has
filed a preliminary prospectus in certain provinces of Canada for a public
offering of Common Shares for the purpose of fulfilling this plan.
Pursuant to the MOU, Dompe also has an option to purchase an additional
US$5 million in equity in a private placement concurrent with a future public
offering in the United States. Additionally, Dompe will pay up to US$1.25
million upon OvaRex(TM) MAb commercialization in Spain and Portugal.
Under the terms of the MOU, the collaboration is structured so that
AltaRex remains responsible for global product development and registration.
The Company will work closely and cooperatively with Dompe and other European
collaborators in achieving registration for OvaRex(TM) MAb throughout Europe.
Dompe becomes responsible for certain OvaRex(TM) clinical trial obligations,
including clinical trial costs, and for product marketing, sales and
distribution in the territory. AltaRex and Dompe will share profits after
expenses.
"This step into major European Economic Community markets is consistent
with our strategy to maximize returns in select regions through collaborations
with the regional market leaders who have significant expertise in marketing
biotech products," commented Richard E. Bagley, President and Chief Executive
Officer of AltaRex. "This alliance builds on our previously announced joint
ventures by successfully growing our global marketing presence with 'best in
class' partners who have an outstanding record of accomplishment."
"I'm extremely pleased with this strategic business alliance which fits
perfectly with our strategy to grow our biotech offerings though product
rights and collaborations in specialized areas of medicine," stated Sergio
Dompe, Chief Executive Officer of Dompe Farmaceutici. "This alliance with
AltaRex reflects our objective to strengthen and expand our biopharmaceutical
operations in Southern and Eastern European markets as well as to add products
fitting with our pipeline in the oncology area, a key strategic business
segment."
Earlier this year, AltaRex announced 50:50 joint venture collaborations
with Medison Pharma Ltd. (for Israel and the Middle East) and Genesis Pharma
S.A. (for Greece and the Balkans).
OvaRex(TM) MAb is the Company's lead product, currently in late-stage
clinical development for the treatment of ovarian cancer. OvaRex(TM) MAb has
received Fast Track designation from the U.S. Food and Drug Administration
(FDA) which can allow for accelerated review. The Company will work with
Dompe and its other partners to obtain regulatory approval and to bring
OvaRex(TM) MAb to market in Southern and Eastern Europe as soon as possible.
Dompe will serve as an expert advisor to AltaRex in this development and
registration process.
About Dompe Farmaceutici S.p.A.
Based in Milan, Italy, Dompe is one of Europe's most integrated and
innovative pharmaceutical and biotech companies. Traditionally established in
the areas of respiratory, anti-inflammatory and osteo-articular
pharmaceuticals, Dompe has since expanded its reach into biotechnology.
About Dompe Biotec
Dompe Biotec is a joint venture between Dompe Farmaceutici and Amgen.
Dompe Biotec is the leading biotechnology company in Italy focused on
marketing biotechnological drugs of high added value within specialized areas
of medicine. Dompe Biotec gained access to three early products of
biotechnology by allying with the large multinational firms that held European
rights to them. Dompe Biotec has since made a point of directly pursuing
North American biotech companies with innovative treatments for specific
medical conditions. Dompe Biotec has established successful partnerships with
global biotechnology companies such as Biogen, Genzyme and Pathogenesis, and
more recently, Hemosol.
About AltaRex Corp.
AltaRex Corp. is focused exclusively on the research, development and
commercialization of antibody-based immunotherapeutic products to prolong life
and reduce the suffering associated with late-stage cancers. Data from
clinical studies suggest that through multiple mechanisms, AltaRex's
proprietary platform technology enhances the ability of the human immune
system to produce an anti-tumor response. The Company has five antibody-based
products in various stages of development. Its most advanced product is
OvaRex(TM) MAb, in late-stage clinical development for the treatment ovarian
cancer.
Additional information about AltaRex research and development, news and
events can be found on its web site at http://www.altarex.com. Clinical information
can also be found on the CenterWatch web site at http://www.centerwarch.com.
Additional information about ovarian cancer can be found at http://www.nci.nih.gov,
http://www.ovariancanada.org and at http://www.ovarian.org.
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 the risk that a definitive agreement is not
entered into with Dompe, our dependence on corporate alliances such as the
alliance with Dompe referred to above, our need for capital and the risk that
the Company can not raise funds on a timely basis or on satisfactory terms,
changing market conditions, completion of clinical trials, patient enrollment
rates, uncertainty of pre-clinical, retrospective and early clinical trial
results which may not be indicative of results that will be obtained in
ongoing or future clinical trials, the establishment of manufacturing
processes, the timely development, regulatory approval and market acceptance
of the Company's products, uncertainty as to whether patents will issue from
pending patent applications and, if issued, as to whether such patents will be
sufficiently broad to protect the Company's technology, 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 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:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, 888-776-6555 or 201-369-3467
Company News On-Call:
http://www.prnewswire.com/comp/128163.html or fax,
800-758-5804, ext. 128163
CONTACT:
Sondra Henrichon, Director, Investor
Relations and Corporate Communications, of AltaRex Corp.,
781-672-0138 ext. 5110, shenrichon@altarex.com, or Wayne
Hendry, Investor Relations of The Equicom Group, Inc,
416-815-0700 ext. 238, whendry@equicomgroup.com
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