Resverlogix Announces Right of First Refusal Agreement with Hepalink USA Inc.
October 24 2017 - 7:00AM
Resverlogix Corp. ("Resverlogix" or the "Company") (TSX:RVX)
announced that it has entered into a Right of First Refusal
Agreement (the “Agreement”) with Hepalink USA Inc. (“Hepalink
USA”). Under the Agreement, Hepalink USA was granted a right of
first refusal in connection with the licensing of the right to
develop, manufacture and commercialize pharmaceutical products
containing RVX-208 (apabetalone) in the United States (the “US
Licensing Rights”) until April 15, 2019. Hepalink USA paid $8
million (the “Fee”) to Resverlogix in consideration for the right
of first refusal granted. If Resverlogix and Hepalink USA enter
into a license agreement with respect to the US Licensing Rights,
the Fee shall be credited against any payment obligations of
Hepalink USA thereunder. Otherwise, the Fee is refundable, in whole
or in part, upon termination of the Agreement. During the first 60
day period, the Agreement may only be terminated upon mutual
agreement of the parties; thereafter, the Agreement may be
terminated by either party.
Mr. Donald McCaffrey, President and CEO, stated,
“We are very pleased that Hepalink USA is interested in a licensing
partnership with Resverlogix, potentially licensing the United
States, the single largest market opportunity available to a
partner.”
The Agreement may be considered a related party
transaction within the meaning of applicable securities laws as
Hepalink USA’s parent company is an insider of the Company. The
Agreement would be exempt from the formal valuation and minority
approval requirements applicable to related party transactions on
the basis that the value of the transaction is less than 25 percent
of the Company's market capitalization. All of the directors
approved the Agreement, other than Mr. Shawn Lu, who declared his
interest in the Agreement as an officer of Hepalink USA, and
accordingly, abstained from approving the Agreement.
About Resverlogix
Resverlogix is developing apabetalone (RVX-208), a
first-in-class, small molecule that is a selective BET (bromodomain
and extra-terminal) inhibitor. BET bromodomain inhibition is an
epigenetic mechanism that can regulate disease-causing genes.
Apabetalone is the first and only BET inhibitor selective for the
second bromodomain (BD2) within the BET protein called BRD4. This
selective inhibition of apabetalone on BD2 produces a specific set
of biological effects with potentially important benefits for
patients with high-risk cardiovascular disease (CVD), diabetes
mellitus (DM), chronic kidney disease, end-stage renal disease
treated with hemodialysis, neurodegenerative disease, Fabry
disease, peripheral artery disease and other orphan diseases, while
maintaining a well described safety profile. Apabetalone is the
only selective BET bromodomain inhibitor in human clinical trials.
Apabetalone is currently being studied in a Phase 3 trial,
BETonMACE, in high-risk CVD patients with type 2 DM and low
high-density lipoprotein (HDL), and is expected to be initiated in
a Phase 2a kidney dialysis trial designed to evaluate biomarker
changes and safety parameters in up to 30 patients with end-stage
renal disease treated with hemodialysis.
Resverlogix common shares trade on the Toronto
Stock Exchange (TSX:RVX).
Follow us on Twitter: @Resverlogix_RVX
(https://twitter.com/resverlogix_rvx), or on our blog at
http://www.resverlogix.com/blog
For further information please
contact:
Investor Relations Email: ir@resverlogix.com Phone:
403-254-9252 Or visit our website: www.resverlogix.com
This news release may contain certain
forward-looking information as defined under applicable Canadian
securities legislation, that are not based on historical fact,
including without limitation statements containing the words
"believes", "anticipates", "plans", "intends", "will", "should",
"expects", "continue", "estimate", "forecasts" and other similar
expressions. In particular, this news release includes forward
looking information relating to a right of first refusal agreement,
potential future licensing transactions, and the potential role of
apabetalone in the treatment of CVD, DM, chronic kidney disease,
end-stage renal disease treated with hemodialysis,
neurodegenerative disease, Fabry disease, peripheral artery disease
and other orphan diseases. Our actual results, events or
developments could be materially different from those expressed or
implied by these forward-looking statements. We can give no
assurance that any of the events or expectations will occur or be
realized. By their nature, forward-looking statements are subject
to numerous assumptions and risk factors including those discussed
in our Annual Information Form and most recent MD&A which are
incorporated herein by reference and are available through SEDAR at
www.sedar.com. The forward-looking statements contained in this
news release are expressly qualified by this cautionary statement
and are made as of the date hereof. The Company disclaims any
intention and has no obligation or responsibility, except as
required by law, to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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