July 7, 1999
CONNETICS ENTERS LICENSE AGREEMENT WITH PALADIN LABS TO DEVELOP AND COMMERCIALIZE RELAXIN (CONXN®) IN CANADA
Palo Alto, CA – July 7, 1999 – Connetics Corporation (Nasdaq: CNCT) and Paladin Labs (VSE: PLB) today announced that they have entered into a development, commercialization and supply agreement for recombinant human relaxin (ConXn®), a potential therapy for the treatment of scleroderma and organ fibrosis. Under the terms of the agreement, Connetics is to receive an initial sum of U.S$800,000, which includes payments for development fees and an equity investment. In addition, Connetics will receive quarterly development payments and potential milestone payments of approximately U.S.$2.5 million over the next several years. Paladin will be responsible for all development and commercialization activities in Canada, and will pay royalty fees on all sales of relaxin in Canada. The transaction is subject to approval by the Vancouver Stock Exchange.
Commenting on the partnership, Tom Wiggans, President and Chief Executive Officer of Connetics said, “We have generated a strong global interest in the continuing development of relaxin for the potential treatment of scleroderma and other diseases. The agreement with Paladin marks the third such partnership Connetics has entered into for the development of relaxin, the first with Suntory Limited in Japan and the second with Medeva PLC in Europe. Paladin is a unique partner with proven marketing capabilities and a strong Canadian sales force which Connetics hopes to leverage as we work toward the future commercialization of ConXn.”
Jonathan Goodman, President of Paladin, said, “Earlier this year, we were pleased to have entered the rheumatology market, which is characterized by a small number of decision-makers driving a large volume of sales. Our hope was to add a second rheumatology product by mid-1999, and the partnership with Connetics for the development and distribution of relaxin allows us to meet that goal. More importantly, we will be participating in the development of a potential treatment for scleroderma, a devastating and progressive disease for which today there is no cure.”
Recombinant human relaxin is a protein that has been demonstrated to inhibit excessive connective tissue build-up by decreasing collagen production and enhancing collagen breakdown. In 1997, Connetics completed a controlled Phase II clinical trial, which showed positive results in the treatment of scleroderma. In February 1999, Connetics continued its development efforts with the initiation of a Phase II/III clinical trial to determine the safety and effectiveness of ConXn. Approximately 200 patients will be enrolled in the study, which is targeted for completion in 2000.
About Connetics Corporation
Connetics Corporation, headquartered in Palo Alto, California, specializes in the acquisition, development and commercialization of marketed and late-stage products, primarily in the area of dermatology and rheumatology. For more information about Connetics and its products, please visit Connetics’ Web Site at www.connetics.com, or send e-mail to ir@connetics.com.
About Paladin Labs Inc.
Paladin Labs, headquartered in Montreal, Quebec is a Canadian developer, marketer and distributor of innovative pharmaceuticals, currently offering products in urology, dermatology, rheumatology and other specialty markets. For more information about Paladin, please visit the Paladin Web Site at www.paladin-labs.com or send e-mail to ir@paladin-labs.com.
This news release may contain forward-looking statements or predictions. These statements represent our judgement as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements Potential risks and uncertainties include, without limitation, those associated with product development, clinical trials, future revenues and profitability, and obtaining marketing approval. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in the projections or forward-looking statements.
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