MARTINSRIED/MUNICH, Germany, WALTHAM, Mass. and PRINCETON, N.J., Dec.
13 /PRNewswire-FirstCall/ -- GPC Biotech AG (Frankfurt Stock Exchange: GPC;
TecDAX 30; Nasdaq: GPCB) announced that on December 12, 2006, the Company
was informed by Spectrum Pharmaceuticals, Inc. that Spectrum has filed a
Demand for Arbitration and Statement of Claim with the American Arbitration
Association to resolve a dispute under the co-development and license
agreement for satraplatin. GPC Biotech firmly believes that Spectrum's
claims are made in bad faith, are inconsistent with the license agreement,
and are completely baseless and without merit.
In its arbitration claim, Spectrum's main allegation is that it is
entitled to a payment from GPC Biotech of approximately euro 9.0 million
(approximately US$ 12 million). This claim is in connection with an
approximately $18 million reimbursement for past development expenses, an
approximately $19 million payment for ongoing and future development costs
and an additional approximately $22 million commitment for future
development related expenses from Pharmion GmbH under the co-development
and license agreement between GPC Biotech and Pharmion entered on December
19, 2005. Spectrum also alleges, together with two other claims, that GPC
Biotech has not used commercially reasonable efforts to obtain regulatory
approval and to promote the distribution of satraplatin in Japan. GPC
Biotech will respond to the filing by seeking an affirmative declaration
that the Company has not defaulted on any material obligation under the
license agreement, will assert various counterclaims against Spectrum in
connection with its wrongful conduct, seeking, among other things, damages
and attorneys' fees, and will pursue all remedies available under the law.
Although Spectrum is seeking a declaration that GPC Biotech's alleged
breach provides a basis for termination, GPC Biotech is confident that the
dispute will not result in a termination of the co-development and license
agreement.
"We believe that the claims made by Spectrum are made in bad faith and
are completely baseless and without merit," said Bernd R. Seizinger, M.D.,
Ph.D., Chief Executive Officer of GPC Biotech. "We will vigorously defend
ourselves against these allegations and seek every remedy available to us
under the law. We are confident that the dispute will not jeopardize our
rights to satraplatin. We therefore are continuing to work aggressively
towards completion of the NDA filing in the U.S. by the end of January and
will move forward, together with our partner Pharmion, on the application
for marketing authorization in Europe. We will also continue to expand our
clinical program for satraplatin and to build our commercial
infrastructure."
About GPC Biotech
GPC Biotech AG is a publicly traded biopharmaceutical company focused
on discovering, developing and commercializing new anticancer drugs. GPC
Biotech's lead product candidate - satraplatin - is an oral platinum-based
compound that has shown highly statistically significant results for
progression-free survival in a Phase 3 registrational trial as a
second-line chemotherapy treatment in hormone-refractory prostate cancer.
The U.S. FDA has granted fast track designation to satraplatin for this
indication, and the rolling NDA submission process for this compound is
underway. Satraplatin was in-licensed from Spectrum Pharmaceuticals, Inc.
GPC Biotech is also developing a monoclonal antibody with a novel
mechanism-of-action against a variety of lymphoid tumors, currently in
Phase 1 clinical development, and has ongoing drug development and
discovery programs that leverage its expertise in kinase inhibitors. GPC
Biotech AG is headquartered in Martinsried/Munich (Germany), and its wholly
owned U.S. subsidiary has sites in Waltham, Massachusetts and Princeton,
New Jersey. For additional information, please visit GPC Biotech's Web site
at http://www.gpc-biotech.com.
This press release contains summary statements relating to the possible
outcome of the proceedings and legal actions referenced herein, including
the potential remedies available to us. Such statements are forward-looking
and are based on current expectations of the management of GPC Biotech and
are subject to risks and uncertainties, many of which are beyond our
control, that could cause future results, performance or achievements to
differ significantly from the results, performance or achievements
expressed or implied by such forward-looking statements. Actual results
could differ materially depending on a number of factors, and we caution
investors not to place undue reliance on the forward-looking statements
contained in this press release. We direct you to GPC Biotech's Annual
Report on Form 20-F for the fiscal year ended December 31, 2005 and other
reports on Form 6-K filed with the U.S. Securities and Exchange Commission
for additional details on the important factors that may affect the future
results, performance and achievements of GPC Biotech. Forward-looking
statements speak only as of the date on which they are made and GPC Biotech
does not undertake any obligation to update these forward-looking
statements, even if new information becomes available in the future.
GPC Biotech AG
Martin Braendle
Director, Investor Relations & Corporate Communications
Phone: +49 (0)89 8565-2693
ir@gpc-biotech.com
In the U.S.: Laurie Doyle
Director, Investor Relations & Corporate Communications
Phone: +1 781 890 9007 X267
usinvestors@gpc-biotech.com
SOURCE GPC Biotech AG
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Related links:
http://www.gpc-biotech.com
CONTACT:
Martin Braendle, Director, Investor Relations
& Corporate Communications, +49-89-8565-2693, ir@gpc-biotech.com,
or Laurie Doyle, Director, Investor Relations & Corporate
Communications, +1-781-890-9007 ext. 267,
usinvestors@gpc-biotech.com, both of GPC Biotech AG
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