MISSISSAUGA, ON
and MONTREAL, July 10, 2013 /PRNewswire/ - Nuvo Research Inc.
(TSX: NRI), a specialty pharmaceutical company dedicated to
building a portfolio of products for the topical treatment of pain
and the development of its immune modulating drug candidate WF10,
and Paladin Labs Inc. (TSX: PLB), a leading specialty
pharmaceutical company today announced that they have completed the
amended loan arrangements (the "Loan") the details of which were
previously announced on June 17,
2013.
Under the terms of the amended arrangements,
Nuvo has drawn down a second $4.0
million loan tranche bringing the total amount currently
outstanding on the Loan to $5.9
million. The Loan bears interest at 15% per annum. Paladin
has been issued warrants to acquire 50,000 Nuvo common shares at
$1.82 per share being 130% of the
5-day trailing value weighted average trading price ("VWAP") of
Nuvo common shares on the Toronto Stock Exchange. The
warrants expire July 10, 2016.
"This $4.0 million
Loan from Paladin together with the $4.5
million upfront payment received today from Galen US
Incorporated from its acquisition of the exclusive U.S. marketing
rights to the current indication of our Synera patch, have
substantially improved our cash position," said Stephen Lemieux, Nuvo's Vice-President and Chief
Financial Officer. "We believe we now have the financial resources
to carry out our business plans through 2014, including completion
of a WF10 Phase 2 study for the treatment of allergic rhinitis
which is a major inflection point for Nuvo."
"We are pleased to support our partner, Nuvo
Research, as it advances the development of its key assets, in
particular WF10," said Mark Beaudet,
interim President and CEO of Paladin Labs. "As a lender to Nuvo, we
support the Galen transaction which strengthens Nuvo's balance
sheet."
About Nuvo Research Inc.
Nuvo is a publicly traded, Canadian specialty
pharmaceutical company, headquartered in Mississauga, Ontario. The Company is
building a portfolio of products for the treatment of pain through
internal research and development. The Company's product
portfolio includes Pennsaid®, Pliaglis and
Synera®. Pennsaid, a topical nonsteroidal
anti-inflammatory drug (NSAID), is used to treat the signs and
symptoms of osteoarthritis of the knee(s). Pennsaid is sold
in the United States by
Mallinckrodt Inc., in Canada by
Paladin Labs Inc. and in several European countries. Pliaglis is a
topical local anesthetic cream which provides topical local
analgesia for superficial dermatological procedures. The
Company has licensed worldwide marketing rights to Pliaglis to
Galderma Pharma S.A., a global pharmaceutical company specialized
in dermatology. Galderma launched the marketing and sale of
Pliaglis in the U.S. in March of 2013 and in the E.U. in April of
2013. Synera is a topical patch that combines lidocaine,
tetracaine and heat, approved in the
United States to provide local dermal analgesia for
superficial venous access and superficial dermatological procedures
and in Europe, for surface
anaesthesia of normal intact skin. Nuvo has licensed the U.S.
marketing rights to Synera to Galen US Incorporated. Nuvo's
European licensing partner, Eurocept International B.V., has
initiated a pan-European launch of Synera (under the name Rapydan)
in several European countries. The Company is also developing
WF10, for the treatment of immune related disease.
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a leading specialty
pharmaceutical company focused on developing, acquiring or
in-licensing innovative pharmaceutical products for the Canadian
market. With this strategy, a focused national sales team and
proven marketing expertise, Paladin has evolved into one of
Canada's leading specialty
pharmaceutical companies. Paladin's shares trade on the
Toronto Stock Exchange under the symbol PLB. For more
information about Paladin, please visit the Paladin Web Site at
www.paladinlabs.com.
Nuvo Research Forward-Looking Statements
Certain statements in this news release
constitute forward-looking statements within the meaning of
applicable securities laws. Forward-looking statements
include, but are not limited to, statements concerning the
Company's future objectives, strategies to achieve those
objectives, as well as statements with respect to management's
beliefs, plans, estimates, and intentions, and similar statements
concerning anticipated future events, results, circumstances,
performance or expectations that are not historical facts.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "outlook", "objective",
"may", "will", "expect", "intend", "estimate", "anticipate",
"believe", "should", "plans" or "continue", or similar expressions
suggesting future outcomes or events. Such forward-looking
statements reflect management's current beliefs and are based on
information currently available to management.
Forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those
contemplated by such statements. Factors that could cause
such differences include the need for additional financing, the
current economic environment, dependence on sales and marketing
partnerships, competitive developments, as well as other risk
factors included in the Company's annual information form dated
March 27, 2013 under the heading
"Risks Factors" and as described from time to time in the reports
and disclosure documents filed by the Company with Canadian
securities regulatory agencies and commissions. This list is
not exhaustive of the factors that may impact the Company's
forward-looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
the Company's forward-looking statements. As a result of the
foregoing and other factors, no assurance can be given as to any
such future results, levels of activity or achievements and neither
the Company nor any other person assumes responsibility for the
accuracy and completeness of these forward-looking
statements. The factors underlying current expectations are
dynamic and subject to change. Although the forward-looking
information contained in this news release is based upon what
management believes are reasonable assumptions, there can be no
assurance that actual results will be consistent with these
forward-looking statements. Certain statements included in
this news release may be considered "financial outlook" for
purposes of applicable securities laws, and such financial outlook
may not be appropriate for purposes other than this news
release. All forward-looking statements in this news release
are qualified by these cautionary statements. The
forward-looking statements contained herein are made as of the date
of this news release and except as required by applicable law, the
Company undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future events or otherwise.
Paladin Labs Forward Looking
Statement
This press release may contain
forward-looking statements and predictions. These forward-looking
statements, by their nature, necessarily involve risks and
uncertainties that could cause actual results to differ materially
from those contemplated by the forward-looking statements. The
Company considers the assumptions on which these forward-looking
statements are based to be reasonable at the time they were
prepared, but cautions that these assumptions regarding the future
events, many of which are beyond the control of the Company and its
subsidiaries, may ultimately prove to be incorrect. Factors and
risks, which could cause actual results to differ materially from
current expectations, are discussed in the annual report as well as
in the Company's Annual Information Form for the year ended
December 31, 2012. The Company
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information
or future events and except as required by law. For additional
information on risks and uncertainties relating to these
forward-looking statements, investors should consult the Company's
ongoing quarterly filings, annual report and Annual Information
Form and other fillings found on SEDAR at www.sedar.com.
SOURCE Nuvo Research Inc.