MONTREAL, Nov. 7, 2006 (PRIMEZONE) -- Viropro Inc. (OTCBB:VPRO) ("Viropro") today announces the signing of a major agreement with Biochallenge S.A. for the development and the technology transfer of four biotherapeutic products. Biochallenge, a Tunisian private pharmaceutical company, will manufacture locally and commercialize these high-quality, low-cost biopharmaceuticals. Viropro will receive $42 million as licensing fees, development and technology transfer costs, and royalties on future sales.
"The market was waiting for this announcement and we are very proud to finalize the agreement with Biochallenge. It clearly demonstrates the capacity of Viropro's Management Team to achieve the goals set out in our business plan," said Dr. Jean-Mary Dupuy, President and CEO of Viropro. "The first agreement is always more difficult to obtain but now that we have attained it, we are in a position to accelerate our discussions with the other countries having similar needs as Tunisia for which we have already begun talks. We are on track with our business plan and we are confident to meet our target of signing two new agreements within the next 12 months with other key players," added Dr. Dupuy.
"The good news for our shareholders is that this agreement could bring development revenue to Viropro as soon as the first quarter of 2007. We expect to receive a total of $1.2 million from this agreement in 2007," stated Gino Di Iorio, Chief Financial Officer of Viropro.
About the Project with Tunisia
The project was initiated in late 2005 and would represent an investment of about $30 million by African and Middle East investors, bankers, funds and institutions. Viropro holds an initial equity participation of 14% in the project.
This alliance will allow Tunisia to develop a strong biotech and pharmaceutical industry in the healthcare sector by acquiring an industrial platform technology for biological drugs to service markets such as Africa, the Middle East, Indonesia, Pakistan, Turkey and western territories of the European Community (the "Territory").
Biochallenge will commercialize these biogeneric drugs at a much lower price to more than 700 million people who do not have access to specific biological drugs for the treatment of diseases such as anaemia, multiple sclerosis, neutropenia, chronic hepatitis B and chronic hepatitis C.
Based on exclusive licenses acquired from Viropro for the Territory, Biochallenge will build a very modern GMP manufacturing plant in the Sidi Thabet Technopark located 20 minutes north of Tunis Airport. The plant will employ 50 to 75 tech and high-tech workers. Process development will be initiated in the near-future by Viropro and its Canadian partners such as the Biotechnology Research Institute and the Laboratory for Food and Veterinary Biotechnology. Revenues for Biochallenge will arise in 2008 with a pre-marketing of finished products purchased from Contract Manufacturing Organizations ("CMOs"). Plant construction should start in the fall of 2007 and first revenues coming from that plant would arise at the end of 2009. Biochallenge will export 98% of its production to other countries in the Territory. The training of some Biochallenge specialized workers will be done in Canada and in Tunisia by Viropro's qualified scientists and engineers.
About Viropro Inc.
Viropro Inc. conducts operations mainly through its subsidiary Viropro International Inc., whose head office is located in Montreal, Canada. Viropro is a rapidly expanding biopharmaceutical company specializing in the transfer of its technologies for industrial production of biogeneric therapeutic proteins, excluding therapeutic vaccines, for the treatment of various diseases including cancer, diabetes, hepatitis or multiple sclerosis. The company's principal objective is to bring about the transfer of technology to pharmaceutical companies in emerging markets with unmet medical needs such as in South America, Asia and Africa. To expand its range of expertise in biopharmaceuticals excluding therapeutic vaccines, Viropro has concluded strategic alliances with various scientific and business partners renowned in national and international spheres. Viropro's business model rests on a strategy aimed at generating recurrent short and long-term revenues, all while maximizing the value of assets and profits of its shareholders.
For more information on Viropro Inc., please visit our website on www.viropro.com
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