Net Proceeds to AltaRex of C$7.75 million
WALTHAM, Mass., Dec. 22 /PRNewswire/ --
AltaRex Corp. (TSE: AXO, OTC: ALRXF) and Dompe Farmaceutici S.p.A. (Dompe)
announced today the closing of Dompe's private placement purchase of
3,522,727 AltaRex Common Shares at C$2.20 per share for net proceeds to
AltaRex of C$7.75 million. The shares are subject to a 180-day lock-up
period. As a result of this purchase, Dompe will own approximately 16% of the
outstanding Common Shares of the Company. Proceeds from this and other
contemplated equity transactions will be used to advance development of the
Company's lead products, OvaRex(R) and BrevaRex(R) MAbs.
"Dompe is an important and valued partner as we proceed to a regulatory
filing of our ovarian cancer drug, OvaRex(R) MAb, both in the United States
and Europe," said Richard E. Bagley, President and CEO of AltaRex Corp. "This
investment reflects the confidence that Dompe has in OvaRex(R) MAb and our
overall strategy. We believe this collaboration will help realize the full
potential of OvaRex(R) MAb upon commercialization."
Under the terms of the Memorandum of Understanding dated November 15,
2000, Dompe and AltaRex have formed a strategic alliance for the
commercialization of AltaRex's lead product OvaRex(R) MAb in Italy, Spain,
Portugal, Switzerland, Austria and certain Eastern European countries. The
Memorandum of Understanding also provides Dompe with the right of first offer
in these territories for additional cancer antibodies being developed by
AltaRex. Dompe also has the option to purchase an additional US $5 million in
equity in a private placement concurrent with a future public offering of
common shares in the United States.
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
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 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(R) MAb,
in late-stage clinical development for the treatment of 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 at http://www.centerwatch.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 our need for capital and the
risk that the Company can not raise funds on a timely basis on satisfactory
terms or at all, 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 and new corporate alliances, 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
http://www.centerwatch.com http://www.nci.nih.gov
http://www.ovariancanada.org http://www.ovarian.org
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/20000831/ALTREXLOGO
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Company News On-Call:
http://www.prnewswire.com/comp/128163.html or fax,
800-758-5804, ext. 128163
CONTACT:
Sondra Henrichon, Director, Investor
Relations of AltaRex Corp., 781-672-0138, ext. 5110, or
shenrichon@altarex.com; or Ezio Moalli, Ph.D., Chief Financial
Officer of Dompe Farmaceutici S.p.A., +39-2-5838-3244, or
moalli@dompe.it; or Wayne Hendry, Investor Relations of The
Equicom Group, Inc., 416-815-0700, ext. 238, or
whendry@equicomgroup.com, for AltaRex
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