Perspective Therapeutics, Inc. (“Perspective” or “the
Company”) (NYSE AMERICAN: CATX), today announced it agreed to fully
divest its brachytherapy business, including its radioactive
Cesium-131 seed assets and related business infrastructure, to GT
Medical Technologies, Inc. (“GT Medical”). The transaction is
expected to close in the first quarter of 2024 and is subject to
customary closing conditions.
Under the terms of the transaction, Isoray
Medical, Inc. (“Isoray”), a wholly-owned subsidiary of the Company,
agreed to sell, and GT Medical agreed to purchase, the Company’s
commercial Cesium-131 brachytherapy division and certain related
assets including inventory and intellectual property. The assets to
be sold consist primarily of customer and supplier lists,
production line equipment, intellectual property associated with
the brachytherapy division, computer equipment and software used in
the brachytherapy division, and the assignment of the brachytherapy
manufacturing facility lease in Richland, WA, along with the
assignment of other vendor contracts. The Company will retain most
liabilities that exist as of the closing date including
environmental, warranty, taxes, accrued payroll and vacation, and
accounts payable. The Company will retain all the accounts
receivable as of the date of closing. As consideration for the
transaction, Perspective will receive an equity interest in GT
Medical and will have the right to receive certain cash royalties
on net sales of Cesium-131 seeds and GT Medical’s GammaTile therapy
utilizing Cesium-131 over the four-year period following the
closing of the transaction.
The sale strengthens Perspective Therapeutics’
position in the lead (Pb)-based targeted alpha-particle therapeutic
space with all Company resources now dedicated to early discovery,
and clinical development of the Company’s melanoma (VMT01) and
neuroendocrine tumor (VMT-α-NET) clinical programs.
“At Perspective Therapeutics, we are
relentlessly focused on realizing the therapeutic potential for the
best possible isotopes that can be used to benefit patients with
difficult-to-treat oncological indications," said Perspective
Therapeutics CEO Thijs Spoor. “The sale of our brachytherapy
business marks a key strategic re-prioritization that allows us to
focus on and dedicate resources towards accelerating the clinical
development of our proprietary alpha-particle therapy portfolio. We
believe that this focused allocation of resources will enable us to
unlock shareholder value, with the added confidence that Cesium-131
as a brachytherapy technology, and the incredibly talented team
dedicated to its production and commercialization, is in excellent
hands.”
GT Medical has been a long-time customer of
Perspective Therapeutics as their patented innovation of the
GammaTile product contains Cesium-131 radioactive seeds. This
Surgically Targeted Radiation Therapy (STaRT) starts radiation
immediately after tumor removal to help eradicate residual tumor
cells in patients with brain tumors. The acquisition strengthens
its position in the market by ensuring access to and control over
radioactive seed production. In addition, it expands GT Medical’s
customer base to include multiple facilities treating patients with
prostate, lung, head & neck, and gynecological tumors.
“As a longstanding customer, we are impressed by
the infrastructure that Perspective Therapeutics established for
its Cesium-131 brachytherapy business,” said GT Medical
Technologies CEO Matthew Likens. “Our acquisition of these
Cesium-131 related assets makes GT Medical Technologies well
positioned to enhance the delivery of GammaTile Therapy in the U.S.
market, building on our commitment to excellence for both patients
and the clinicians. We are excited about integrating the Cesium-131
brachytherapy team following the closing of the transaction.”
About Perspective Therapeutics,
Inc.Perspective Therapeutics, Inc., is a diversified
medical technology and radiopharmaceutical company that is
pioneering advanced treatment applications for cancers throughout
the body. The Company has a proprietary technology that utilizes
the alpha emitting isotope 212Pb to deliver powerful radiation
specifically to cancer cells via specialized targeting peptides.
The Company is also developing complementary imaging diagnostics
that incorporate the same targeting peptides which provide the
opportunity to personalize treatment and optimize patient outcomes.
This "theranostic" approach enables the ability to see the specific
tumor and then treat it to potentially improve efficacy and
minimize toxicity associated with many other types of cancer
treatments.
The Company's melanoma (VMT01) and
neuroendocrine tumor (VMT-α-NET) programs have entered Phase 1/2a
imaging and therapy trials for the treatment of metastatic melanoma
and neuroendocrine tumors at several leading academic institutions.
The Company has also developed a proprietary 212Pb generator to
secure key isotopes for clinical trial and commercial
operations.
For more information, please visit the Company's
website at www.perspectivetherapeutics.com .
About GT Medical Technologies,
Inc.Driven to raise the standard of care and improve the
lives of patients with brain tumors, a team of brain tumor
specialists formed GT Medical Technologies. GammaTile is
FDA-cleared as a treatment for patients with newly diagnosed
malignant intracranial neoplasms and patients with recurrent
intracranial neoplasms. Since its full market release in the
United States in March 2020, GammaTile has been offered
in over 100 leading institutions, with more centers being added
each month. For more information,
visit www.gtmedtech.com and follow @GammaTile
on Twitter and LinkedIn.
Safe Harbor Statement
This press release contains forward-looking
statements within the meaning of the United States Private
Securities Litigation Reform Act of 1995. Statements in this press
release that are not statements of historical fact are
forward-looking statements. Words such as “may,” “will,” “should,”
“expect,” “plan,” “anticipate,” “could,” “intend,” “target,”
“project,” “estimate,” “believe,” “predict,” “potential” or
“continue” or the negative of these terms or other similar
expressions are intended to identify forward-looking statements,
though not all forward-looking statements contain these identifying
words. Forward-looking statements in this press release include
statements concerning, among other things: the expected closing of
the transaction; the Company’s belief that its focused allocation
of resources will enable it to unlock shareholder value; the
Company's prediction that complementary imaging diagnostics that
incorporate certain targeting peptides provide the opportunity to
personalize treatment and optimize patient outcomes; the Company's
expectation that its "theranostic" approach enables the ability to
see specific tumors and then treat it to potentially improve
efficacy and minimize toxicity associated with many other types of
cancer treatments; the Company’s clinical development plans and the
expected timing thereof; the expected timing for availability and
release of data; expectations regarding the potential market
opportunities for the Company’s product candidates; the potential
functionality, capabilities, and benefits of the Company’s product
candidates and the potential application of these product
candidates for other disease indications; the Company’s
expectations, beliefs, intentions, and strategies regarding the
future; the Company’s intentions to improve important aspects of
care in cancer treatment; and other statements that are not
historical fact.
The Company may not actually achieve the plans,
intentions or expectations disclosed in the forward-looking
statements and you should not place undue reliance on the
forward-looking statements. These forward-looking statements
involve risks and uncertainties that could cause the Company’s
actual results to differ materially from the results described in
or implied by the forward-looking statements, including, without
limitation, the potential that regulatory authorities may not grant
or may delay approval for the Company’s product candidates;
uncertainties and delays relating to the design, enrollment,
completion, and results of clinical trials; unanticipated costs and
expenses; early clinical trials may not be indicative of the
results in later clinical trials; clinical trial results may not
support regulatory approval or further development in a specified
indication or at all; actions or advice of regulatory authorities
may affect the design, initiation, timing, continuation and/or
progress of clinical trials or result in the need for additional
clinical trials; the Company’s ability to obtain and maintain
regulatory approval for the Company’s product candidates; delays,
interruptions or failures in the manufacture and supply of the
Company’s product candidates; the size and growth potential of the
markets for the Company’s product candidates, and the Company’s
ability to service those markets; the Company’s cash and cash
equivalents may not be sufficient to support its operating plan for
as long as anticipated; the Company’s expectations, projections and
estimates regarding expenses, future revenue, capital requirements,
and the availability of and the need for additional financing; the
Company’s ability to obtain additional funding to support its
clinical development programs; the availability or potential
availability of alternative products or treatments for conditions
targeted by the Company that could affect the availability or
commercial potential of its product candidates; the ability of the
Company to manage growth and successfully integrate its businesses;
the Company’s ability to maintain its key employees; sufficient
training and use of the Company’s products and product candidates;
the market acceptance and recognition of the Company’s products and
product candidates; the Company’s ability to maintain and enforce
its intellectual property rights; the Company’s ability to maintain
its therapeutic isotope supply agreement with the Department of
Energy; the Company’s ability to continue to comply with the
procedures and regulatory requirements mandated by the FDA for
additional trials, Phase 1 and 2 approvals, Fast Track approvals,
and 510(k) approval and reimbursement codes; and any changes in
applicable laws and regulations. Other factors that may cause the
Company’s actual results to differ materially from those expressed
or implied in the forward-looking statements in this press release
are described under the heading “Risk Factors” in the Company’s
most recent Transition Report on Form 10-KT and the Company’s most
recent Quarterly Report on Form 10-Q, each filed with the
Securities and Exchange Commission (the “SEC”), in the Company’s
other filings with the SEC, and in the Company’s future reports to
be filed with the SEC and available at www.sec.gov.
Forward-looking statements contained in this
press release are made as of this date, and the Company undertakes
no duty to update such information whether as a result of new
information, future events or otherwise, except as required under
applicable law.
Media and Investor Relations Contacts:
Russo Partners, LLC
Nic Johnson or Harrison Seidner, Ph.D.
E: Nic.johnson@russopartnersllc.com
E: Harrison.seidner@russopartnersllc.com
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