Procyon Licenses U.S. Marketing Rights for Fibrostat(R) to Biovail

Jan 04, 2002, 00:00 ET from Procyon Biopharma Inc.

    MONTREAL, Jan. 4 /PRNewswire/ - Procyon Biopharma Inc. (TSE:PBP)
 announced today the signing of a licensing agreement with Biovail Corporation
 for the marketing rights in the United States to FIBROSTAT(R), a novel topical
 therapeutic for scar management. The culmination of this agreement follows an
 expanding relationship between both companies subsequent to an alliance for
 the Canadian marketing rights for FIBROSTAT(R) with Biovail Pharmaceuticals
 Canada (a division of Biovail Corporation) in February of last year and the co-
 development activities undertaken since then. Terms of the agreement include
 an investment of $4 million in preferred equity, $5 million as a licensing fee
 upon approval and commercialization of the product in the U.S., and double-
 digit royalties payable to Procyon upon the commercialization of the product.
 The deal also includes undisclosed payments by Biovail to Procyon specifically
 associated with the development of FIBROSTAT(R), subject to the attainment of
 certain milestones.
     "This is a tremendous step forward in the path to commercialization of
 FIBROSTAT(R) worldwide and is a further validation of the potential of this
 unique product. As well, this is a very important milestone for the Company.
 This sets the stage for licensing this product out in the rest of the world
 including Europe and Japan" said Mr. Hans J. Mader, CEO, President and
 Chairman of Procyon Biopharma Inc. "We are very pleased that our alliance for
 FIBROSTAT(R) now covers both the United States and Canada. This is in line
 with Biovail's enhanced emphasis on the U.S. market following the recent
 acquisition of a U.S. pharmaceutical sales and marketing organization and the
 Company's plans to add an additional 500 sales representatives to this
 organization," said Mr. Rolf Reininghaus, President of Biovail Ventures.
     FIBROSTAT(R) is a novel topical therapeutic for scar management in
 patients who have undergone dermal trauma, such as surgery. FIBROSTAT(R) has
 been proven to significantly reduce hypertrophic scarring in past clinical
 trials and is currently available in Canada under the Special Access Program
 of Health Canada. FIBROSTAT(R) is well advanced on the development path with
 commercial launch expected in 2004/2005 in North America. Currently, the
 product is undergoing final dose finding studies in Canada with Phase III
 trials slated to begin early next year.
     FIBROSTAT(R) is patented in the U.S, Canada, Japan and Australia, with
 patents allowed in Europe and is one of two late-stage products in Procyon's
 development pipeline. It was invented by Dr. Ken Dolynchuk, a plastic surgeon
 at the University of Manitoba, and has been exclusively licensed to Procyon.
     Procyon Biopharma Inc. is a publicly listed, Biopharmaceutical Company
 focused principally on advancing two powerful platform technologies that have
 the potential to diagnose and treat cancer. Procyon's non-pathogenic
 Antinucleosome Autoantibodies (ANAs) bind specifically to multiple cancer cell
 types strongly enhancing the immune response to cancer cells. Prostate
 Secretory Protein (PSP94) is a naturally occurring human protein that has the
 potential to treat prostate cancer by inhibiting abnormal prostate cell
 growth. In addition, the estimation of PSP94 levels in prostate cancer
 patients may have prognostic and diagnostic applications. Procyon also has two
 late-stage products: FIBROSTAT(R), a topical cream for the management of newly
 formed scars following surgery or burns and COLOPATH(R), a rapid, non-invasive
 screening test for colorectal cancer.
     Procyon's shares trade on the Toronto Stock Exchange under the ticker
 symbol, PBP.
     This release contains forward-looking statements that reflect the
     company's current expectation regarding future events. The forward-
     looking statements involve risk and uncertainties. Actual events could
     differ materially from those projected herein and depend on a number of
     factors including, but not limited to, changing market conditions,
     successful and timely completion of clinical studies, uncertainties
     related to the regulatory approval process, establishment of corporate
     alliances and other risks detailed from time to time in the company's

SOURCE Procyon Biopharma Inc.