IRVINE, Calif., Dec. 1, 2011 /PRNewswire/ -- AtheroNova Inc. (OTCBB: AHRO) ("AtheroNova"), a biotech company focused on the research and development of compounds to regress atherosclerotic plaque, today announced that its agreement with OOO CardioNova ("CardioNova"), a Russian subsidiary of Maxwell Biotech Group ("Maxwell"), to license territorial development and commercialization rights for AtheroNova's AHRO-001 lead compound has been ratified by both companies. In addition, under a separate securities purchase agreement, CardioNova will become an equity investor in AtheroNova with an initial stock purchase of up to $267,000.
Initial funding of $900,000 has been provided by Maxwell Biotech Venture Fund, Russia's premier biotech venture capital firm, to CardioNova with which to initiate Phase I human clinical studies in Russia. The license agreement provides for AtheroNova to issue up to $3.8 million in common stock to CardioNova for funding and performing Phase I and Phase II studies of AHRO-001, to be issued in tranches based on the progress of the studies. Successful development will enable CardioNova to realize the value of its exclusive licensing rights to develop and commercialize AHRO-001 in the territory encompassing the Russian Federation, Belarus, Ukraine, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Moldova, Azerbaijan and Armenia.
"We are pleased to have the enthusiastic support and confidence of such an internationally respected partner as Maxwell," said Thomas W. Gardner, CEO of AtheroNova. "This commitment of resources to move into Phases I and II human clinical studies in Russia signifies a great step in the progress of AHRO-001 as a potential treatment of atherosclerosis and could help millions of patients world-wide."
"Maxwell is delighted to be the first licensing partner for AtheroNova's AHRO-001," said Alexey Eliseev, Managing Director of Maxwell. "We anticipate strong demand for AtheroNova's atherosclerotic plaque regression compound in the license region and await positive results for AHRO-001 in its ability to prevent and regress atherosclerotic plaque and reduce cholesterol."
AtheroNova, through its wholly-owned subsidiary, AtheroNova Operations, Inc., is a development stage company currently researching novel patents-pending applications of certain natural compounds to regress atherosclerotic plaque deposits, a process called delipidization. The Company plans to develop multiple applications for its compounds, to be used in pharmaceutical grade products for the treatment of atherosclerosis, obesity and lipomas.
About Maxwell Biotech Group
Maxwell Biotech Group is a development partner and financial resource for biotechnology companies. Maxwell provides investment capital and access to an established infrastructure for conducting high-quality clinical trials in Russia, and helps enable the rapid and cost-effective achievement of clinical objectives. Maxwell's unique business model can add value to its partners' pipelines and provide a commercialization path to one of the most lucrative emerging markets. Maxwell relies on an experienced international team of managers and financial and industry experts, with offices in Moscow, Boston and San Diego.
About OOO CardioNova
OOO CardioNova is an operational company in the Russian Federation founded by Maxwell Biotech Group to conduct clinical trials of AHRO-001, seek its approval, and then commercialize it in the territories covered by the license agreement.
Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently unreliable and actual results may differ materially. Examples of forward-looking statements in this news release include statements regarding the Company's milestones, future filings and trials, markets, mechanisms of action, licensing agreements and equity investment as well as the development of applications for AtheroNova's technology. Factors which could cause actual results to differ materially from these forward-looking statements include such factors as significant fluctuations in expenses associated with clinical trials, failure to secure additional financing, the inability to complete regulatory filings with the Food and Drug Administration, the introduction of competing products, or management's ability to attract and maintain qualified personnel necessary for the development and commercialization of its planned products, and other information that may be detailed from time to time in AtheroNova's filings with the United States Securities and Exchange Commission. AtheroNova undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE AtheroNova Inc.