MONTREAL, Oct. 11, 2007 (PRIME NEWSWIRE) -- Viropro International Inc., subsidiary of Viropro Inc. (Viropro) (OTCBB:VPRO), and Intas Biopharmaceuticals Limited (IBPL) have signed a final contract for the development and production of an undisclosed therapeutic protein.
The signature of the development contract along with a consultancy contract signed in parallel will provide Viropro with product development and licensing revenues of US$2.14 million over the next 2 years. This agreement will bring multiple sub-licensing agreements around the world, generating licensing fees and royalties which could represent up to approximately US$100 million in revenues for Viropro over the 10 year term of this agreement.
The contract offers exclusive territories for both companies and the opportunity to work together in non exclusive territories. Both companies will have the right to sub-license the corresponding technologies and materials to third parties through out-licensing and partnership agreements. As mutually agreed to by IBPL and Viropro, the respective companies will retain the IP rights throughout the term of the agreement. In addition, IBPL has secured a first right of refusal for all additional follow-on biopharmaceuticals developed by Viropro which further strengthens unique commercial and research collaboration opportunities for both companies.
"The market was waiting for this announcement and we are very proud to finalize the agreement with IBPL," said Dr. Jean-Marie Dupuy, President and CEO of Viropro. "It clearly demonstrates the capacity of Viropro's Management Team to achieve the goals set out in our business plan. We are now well positioned to accelerate our discussions with companies in various other countries. Viropro is very pleased to work with IBPL, a well established biopharmaceutical company that has a proven track record of quickly bringing products to market. This partnership testifies to Viropro's strong intellectual property and process development skills."
Commenting on IBPL's association with Viropro, Dr. Rustom Mody, Head (Quality & Strategic Research), IBPL, said, "In line with the company's R&D strategy to develop innovative research technologies/new molecules related to biopharmaceuticals and identify partnership opportunities, the R&D agreement with Viropro marks the beginning of a collaboration through which both companies will continue to explore opportunities in the development of future technologies."
Speaking on the development, Shri Mani Iyer, Director, IBPL, said, "IBPL is looking to leverage certain proprietary technologies and expertise of Viropro towards co-development of molecules dedicated to bio-therapeutic products."
IBPL expects to commercialize the product and market it in India, Sri Lanka, Bangladesh, Pakistan, Nepal, Burma, Thailand, Laos, Cambodia, Malaysia and Vietnam; Viropro will retain out-licensing rights for all of Africa. Out-licensing to all other territories will be undertaken jointly by both parties.
Viropro is also pleased to announce a Bridge Loan Financing of US$1.5 million with Westward Expansion, a private Canadian corporation specialized in venture capital. This financing, subject to usual conditions, will consolidate Viropro's financial position, enabling it to speed up the development of generic biopharmaceutical products and to fulfill the objectives of the collaborative development and license agreement.
The Bridge Loan Financing is accompanied by a conversion right permitting the lender to convert the capital and interest into units of Viropro at a deemed price of $.06 per unit. Each unit will consist of 1 Common Share and 1 common share purchase warrant of Viropro (the "Warrants"). Each Warrant will entitle the holder thereof, during a period of 24 months from the date of issuance of the Warrants to purchase 1 common share of $.12 per Common Share. The Common Shares issued will be subject to rule 144.
Dr. Jean-Marie Dupuy, Viropro's President and Chief Executive Officer, stated: "Securing this funding is an important element of our continued efforts to enhance our key strategic development programs. We are confident that this financing will provide the necessary resources for these efforts."
He added: "Due to the high cost of biological products and the need of such products in developing countries, there is presently a large window of opportunity for biosimilar (generic biopharmaceutical) products. This financing will enable Viropro, in collaboration with its strategic partners, to continue to build its dominant position in the field of biosimilars and will allow it to speed up the development of new generic biological products."
About Intas Biopharmaceuticals Ltd.
IBPL is one of the fastest growing biopharmaceutical companies in India. As an independent entity of Intas group, the company has carved a niche in the biotechnology sector in the country. The company has fully integrated biopharmaceutical operations with an ultra modern R&D facility and an EU-GMP certified Manufacturing Facility approved to manufacture microbial and cell culture derived bulk drugs and finished products in pre-filled syringes and vials (Lyophilized).
About Viropro Inc.
Viropro Inc. conducts operations 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 for the treatment of various diseases including cancer, diabetes, hepatitis or multiple sclerosis. The company's principal objective is to provide manufacturing process technology transfers 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, Viropro has concluded strategic alliances with various scientific and business partners renowned in national and international spheres. For more information on Viropro Inc., please visit our website at www.viropro.com