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
"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
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.