HMSL Hemosol (MM)

Hemosol to Produce Iron-Binding Drugs for use in U.S. Clinical Studies - Iron-binding drug will be evaluated in type 1 diabetes intervention program - TORONTO, April 4 /PRNewswire-FirstCall/ -- Hemosol Corp. (NASDAQ:HMSLNASDAQ: TSX:NASDAQ:HML) today announced that it has negotiated an agreement with Biomedical Frontiers Incorporated (BMF), a private biopharmaceutical company located in Minneapolis, Minnesota, under which Hemosol will produce two separate iron-binding drugs (40SD02 and 25SD04). These injectable drug formulations will be used for pre-clinical and clinical studies for treatment of iron poisoning, iron overload and diabetic complications. Production is scheduled to begin in the second quarter of 2005. Revenue from the agreement governing the BMF relationship is expected to contribute to modestly reducing Hemosol's burn rate in 2005. "The key benefit to Hemosol from this agreement is demonstrating the ongoing achievements related to our strategy to leverage the Meadowpine facility to provide high value bio-manufacturing services," said Lee Hartwell, President & CEO of Hemosol. "While the offset to our cash burn from this agreement is minimal, we are excited about the future potential of our relationship with BMF and the U.S. National Institutes of Health (NIH). We look forward to continued success meeting our new customers' needs and those of similar organizations." BMF's proprietary iron-binding drugs are produced by chemical attachment of deferoxamine to polymers. Deferoxamine is the only FDA-approved drug for treatment of iron poisoning and iron overload disorders. 25SD02 has been selected for inclusion in the Type 1 Diabetes - Rapid Access to Intervention Development (T1D-RAID) Program of the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK), a component of the NIH. In collaboration with academic investigators, BMF has demonstrated that a prototype formulation of 25SD02 reverses abnormalities in nerve function occurring in diabetic animals. Under the T1D-RAID program the drug will undergo pre-clinical testing required before human clinical trials. The T1D-RAID is a cooperative program of the NIDDK designed to facilitate translation to the clinic of novel, scientifically meritorious therapeutic interventions. The goal of the program is to support pre-clinical work needed for the clinical "proof-of-principle", the study that determines if a new molecule or novel approach is a viable candidate for expanded clinical evaluation for the conditions of type 1 diabetes and its complications. "Execution of the Manufacturing and Supply Agreement with Hemosol for our patented iron-binding drugs represents a very significant step for our Company. It allows us to continue our clinical program in thalassemia and sickle cell disease with our lead drug and begin our pre-clinical studies targeting diabetic complications in collaboration with the National Institutes of Health," stated Bo Hedlund, President and CEO of Biomedical Frontiers. "We hope that this agreement will lead to expanded collaboration between BMF and Hemosol, a Company with considerable know-how and a state-of-the-art manufacturing facility for manufacturing of protein and polymer based drugs and biologics." About Biomedical Frontiers Biomedical Frontiers is a privately held biopharmaceutical company developing a family of novel and proprietary iron-binding drugs for the treatment of a number of medical indications, including iron overload disorders, iron poisoning and diabetic neuropathy. BMF has been granted Orphan Drug Designations for its 40SD02 drug for treatment of iron poisoning and for treatment of iron overload, resulting from chronic transfusion therapy in diseases such as thalassemia and sickle cell anemia. About Hemosol Hemosol is a biopharmaceutical company focused on the development and manufacturing of biologics, particularly blood-related proteins. Hemosol has a broad range of novel therapeutic products in development, including oxygen therapeutics and protein-based therapeutics to treat certain infectious diseases, cancers and anemia. For more information visit Hemosol's website at http://www.hemosol.com/. Hemosol's common shares are listed on the NASDAQ Stock Market under the trading symbol "HMSL" and on the Toronto Stock Exchange under the trading symbol "HML". Certain statements concerning Hemosol's future prospects are "forward- looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable securities legislation. There can be no assurances that future results will be achieved, and actual results could differ materially from forecasts and estimates. Important factors that could cause actual results to differ materially from forecasts and estimates include, but are not limited to: Hemosol's ability to successfully implement the Cascade technology and commercialize products derived there from; Hemosol's ability to obtain additional financing; Hemosol's ability to obtain regulatory approvals for its products; Hemosol's ability to successfully complete clinical trials for its products; Hemosol's ability to enter into satisfactory arrangements for the supply of materials used in its manufacturing operations and the sale of resulting products to customers; technical, manufacturing or distribution issues; the competitive environment for Hemosol's products and services; the degree of market penetration of Hemosol's products; Hemosol's ability to attract and retain clients for its bio-manufacturing services; and other factors set forth in filings with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. These risks and uncertainties, as well as others, are discussed in greater detail in the filings of Hemosol with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission. Hemosol makes no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made. DATASOURCE: Hemosol Corp. CONTACT: Jason Hogan, Investor & Media Relations, Tel: (416) 361-1331, Tel: (800) 789-3419, Fax: (416) 815-0080, , http://www.hemosol.com/; Contact at Biomedical Frontiers: Bo E. Hedlund, Ph.D., President & CEO, Tel: (612) 378-0228, Fax: (612) 378-3601, ; Contact at NIDDK: Myrlene Staten, M.D., Senior Advisor, Diabetes Research Translation, Tel: (301) 402-7886, Fax: (301) 480-3503, ; Archived images on this organization are searchable through CNW Photo Archive website at http://photos.newswire.ca/. Images are free to accredited members of the media. To request a free copy of this organization's annual report, please go to http://www.newswire.ca/ and click on reports@cnw.

Copyright