NEW YORK, Oct. 7, 2004 (PRIMEZONE) -- Bioaccelerate Holdings, Inc. (OTCBB:BACL), a pharmaceutical development organization, today announced that it will invest in Australian Cancer Technology ('AustCancer') (ASX:ACU) by taking an Australian $1.88 million share placement in the company.
Included in the agreement is a commitment to a wider collaboration between the two companies -- in particular a new prostate cancer compound introduced by Bioaccelerate. The collaboration will also include work on the pancreatic drug RP101, which is targeted at preventing cells from developing a resistance to Chemotherapy, and will begin immediately.
Bioaccelerate, Inc., a wholly owned subsidiary of Bioaccelerate Holdings, Inc will take 4,893,301 ACU shares at Australian $0.38.4 cents per share through a private placement which will be ratified at AustCancer's Annual General Meeting on 4 November, 2004.
AustCancer will proceed with a pro-rata non-renounceable rights issue. Eligible shareholders will be offered one new share for every ten shares they hold as of 18 October 2004 at an issue price of 35 cents per share, 14.7 per cent discount to the one month volume weighted average price. The rights issue will increase the Company's capital and finance the progress of clinical trials in AustCancer's suite of Oncology therapeutic products.
"The rights issue will give all eligible shareholders the opportunity to further participate in the growth of the company," said AustCancer managing director, Mr. Paul Hopper.
AustCancer recently acquired the North American license for developmental pancreatic cancer drug RP101 from the German biotechnology company, RESprotect GmbH, including a 10% shareholding in the Company. Two pilot clinical trials of RP101 with 30 and 13 patients, showed significant promise with interim analysis of the second pilot trial of 13 pancreatic cancer patients, revealing strong patient responses -- total remission in two patients as measured by tumor markers, and partial remission of the primary tumor in three patients.
A Phase I dose finding study on 22 pancreatic patients will begin in 3 German Centers in the next 6 weeks. A Phase IIb clinical trial in 130 patients is expected to commence in the U.S. in the second half of 2005.
Bioaccelerate's proprietary prostate cancer technology, details of which are commercially confidential at this stage, is based on the identification of two proteins, calreticulin (EAF1) and TID1 that are down regulated in prostate cancer. Project researchers at a leading U.S. university are developing potential prostate cancer therapeutics by identifying molecules that modulate the expression and/or effectiveness of EAF1 and TID1. It is anticipated that the lead product would move into Phase I clinical trials in 2005.
AustCancer managing director Paul Hopper welcomed the establishment of the relationship with Bioaccelerate. "Bioaccelerate's expertise in expediting drug development and its contribution to further clinical trials of RP101 will enable us to determine and exploit the commercial potential of the technology in the shortest possible time frame. The prostate cancer therapeutic is also a promising addition to our rapidly growing development pipeline, particularly in light of our Phase IIb prostate vaccine trial in Melbourne," he said.
Bioaccelerate's Senior Vice President Christopher O'Toole commented, "We see RP101 as a particularly exciting development product but we are also delighted to be able to participate in AustCancer's other promising drug development projects through our shareholding in the company."
BIO-IB, LLC, a New York based healthcare investment banking boutique acted as financial adviser for this transaction.
About Bioaccelerate
Bioaccelerate Holdings Inc. ("Bioaccelerate") is a company that acquires and develops pharmaceutical compounds which its management believes have potential for substantial medical and commercial value. Bioaccelerate currently has majority equity interests in 10 biotech companies, two of which are public. Bioaccelerate also holds minority equity interests in three Biotech companies, two of which are public. The companies which Bioaccelerate currently has equity interests in focus on five vertical therapeutic areas: cancer, cardiovascular, lifestyle, central nervous system and anti-infectives. Bioaccelerate's strategy utilizes a development network to accelerate the development of multiple early-stage compounds to Phase II/III clinical development. Management believes this creates a lower-risk business model as Bioaccelerate's network enables a timely and cost-effective passage from the discovery process up to Phase II/III where substantial incremental value can be created. For more information on the company please see the company's website at www.bioaccelerate.com
About Australian Cancer Technology
Listed on the Australian Stock Exchange (code: ACU) Australian Cancer Technology is a broadly based international oncology company developing a portfolio of high quality oncology related projects that are at various stages of commercialization. Cash generating businesses will provide the funds to exploit the potential of its leading products and to introduce promising pre-clinical and Phase I projects into the development pipeline. Its leading edge Pentrys(tm) anti-cancer vaccine successfully completed Phase I and Phase I/IIa trials at St. Vincent's Hospital Sydney and is undergoing a comprehensive Phase IIb trial with prostate cancer patients at three leading Melbourne institutions. Its U.S. subsidiary, revisys(tm), is launching a range of medical nutritionals designed by leading US scientists for people with special needs, including those undergoing cancer treatments. The company is also broadening its cancer therapeutic development pipeline and has acquired the U.S. based Galenica Pharmaceuticals, whose immune enhancing adjuvants are being used in three Phase I and II cancer trials and will be used in a number of other forthcoming clinical trials in association with Memorial Sloan Kettering Cancer Centre in New York. The company has also recently announced the acquisition of the North American license for the promising pancreatic cancer drug, RP101, for which it is developing an accelerated clinical trial program including application to the U.S. FDA for Orphan Drug status. AustCancer has established a Level 1 ADR stock program in the U.S., trading under the code of AUCJY. www.austcancer.com.au
This release includes forward-looking statements. Such statements involve risks and uncertainties which could cause actual results to differ materially from those set forth herein.