ImaRx Therapeutics Signs Letter of Intent With Microbix Biosystems for the Sale of Urokinase
May 07 2008 - 8:00AM
PR Newswire (US)
Microbix to Acquire Commercialized Thrombolytic and Related Assets
for $17 Million TUCSON, Ariz., May 7 /PRNewswire-FirstCall/ --
ImaRx Therapeutics, Inc. (NASDAQ:IMRX) today announced that it has
signed a letter of intent in which Microbix Biosystems will acquire
urokinase inventory and related assets from ImaRx for $17 million
in cash. Urokinase is an FDA-approved thrombolytic, or
clot-dissolving agent, indicated for the treatment of acute massive
pulmonary embolism. ImaRx acquired an approximate four year
inventory of the product from Abbott Laboratories and has been
selling the product from inventory since 2006. Bradford A. Zakes,
President and CEO of ImaRx, stated, "The proceeds to be generated
through this transaction provide ImaRx with a solid source of non-
dilutive financing. We are very pleased with the terms under which
we have reached agreement with Microbix on the sale of our
urokinase asset. Through this transaction, ImaRx will have gained
access to operating capital under favorable economic terms that
will enable the company to continue the advancement of our core
SonoLysis technology." Under terms of the agreement, Microbix will
acquire the urokinase product and related assets for an upfront
payment of $12 million plus an additional $5 million upon
achievement of an inventory stability milestone. Upon closing,
Microbix will assume full responsibility for urokinase, including
sales, marketing and regulatory compliance requirements. To
facilitate the inventory stability milestone, Microbix will engage
ImaRx in a support services agreement. ImaRx had previously
announced in January 2008 that it had signed a letter of intent to
partner with Microbix in the transfer of the manufacturing process
and production of a new supply of urokinase. Zakes stated, "Whereas
we viewed the manufacturing partnership with Microbix under the
structure of our original letter of intent as an attractive means
of maintaining an ongoing supply of urokinase in the marketplace,
we ultimately concluded that selling the entire asset to Microbix
created an even greater value proposition for ImaRx by enabling the
company to accelerate the monetization of our existing inventory
and utilize the proceeds towards the advancement of our SonoLysis
program." This decision was further supported by the company's
announcement in April 2008 that it had fully satisfied all of its
obligations under the $15 million non-recourse promissory note to
Abbott Laboratories in exchange for the payment of $5.2 million in
cash and certain payables. Mr. Zakes concluded, "SonoLysis
represents the original investment thesis for the vast majority of
our existing shareholders. ImaRx is recognized world wide as a
leader in the development of microbubble technologies and has a
proven track record in this field. We have an experienced and
talented team of scientists that are passionate about this program
and dedicated in their pursuit to prove the therapeutic potential
of this important technology. We were encouraged by the results of
this technology from the first cohort of our TUCSON stroke study
and believe that SonoLysis has the potential to treat several other
vascular disorders beyond ischemic stroke including peripheral
artery disease, deep vein thrombosis and other life threatening
indications. Although sales of our urokinase inventory served a
valuable purpose in helping cash-flow the business since the time
we acquired it from Abbott, the $17 million in proceeds generated
through the divestiture of this asset will enable the company to
focus on our core competency and work towards generating future
value for our shareholders." About ImaRx Therapeutics ImaRx
Therapeutics is a biopharmaceutical company developing and
commercializing therapies for vascular disorders. The Company's
research and development efforts are focused on therapies for
stroke and other vascular disorders using its proprietary
microbubble technology. The Company's commercialization efforts are
currently focused on its product, urokinase, for the treatment of
acute massive pulmonary embolism. About SonoLysis ImaRx's SonoLysis
program involves the administration of its proprietary MRX-801
microbubbles and ultrasound to break up blood clots and restore
blood flow to oxygen deprived tissues. The sub-micron size of
MRX-801 microbubbles may allow them to penetrate a blood clot, so
that when ultrasound is applied their expansion and contraction, or
cavitation, can break the clot into very small particles. This
technology was most recently evaluated in a Phase I/II clinical
trial in combination with tPA in patients suffering from acute
ischemic stroke. About Urokinase Urokinase is a thrombolytic or
clot-dissolving agent indicated for the treatment of acute massive
pulmonary embolism, or blood clots in the lungs. The product has
been commercialized for more than 20 years and has been
administered to greater than four million patients. In 2006, ImaRx
acquired urokinase and all related assets, including an approximate
four-year supply of inventory, cell lines and manufacturing rights
to the drug. Since October 2006, ImaRx has been selling its
urokinase inventory in the U.S. market where it is estimated to be
listed on pharmacy formularies at approximately 700 acute care
hospitals and has generated $14.2 million in net proceeds through
the fourth quarter of 2007. Cautionary Statement For The Purpose Of
The "Safe Harbor" Provisions Of The Private Securities Litigation
Reform Act of 1995 This press release contains forward-looking
statements, which are subject to risks and uncertainties that could
cause actual results to differ materially from those set forth in
the forward-looking statements including the risks associated with
the fact that the Letter of Intent with Microbix is subject to
various conditions to closing any of which if not satisfied may
result in termination of the agreement, including: failure of the
parties to enter into a definitive agreement; failure of Microbix
to finance the acquisition; and failure to complete due diligence
to the satisfaction of either or both parties. Additionally,
ImaRx's development of its SonoLysis program is also subject to
certain risks and uncertainties including: ImaRx may not timely or
successfully develop SonoLysis; the Company may not have sufficient
resources to complete the development of SonoLysis for any
indication; data generated by the Company may not support approval
of the therapy by the FDA; advancement of the SonoLysis program may
not result in the generation of shareholder value; and other risks
associated with the approval and commercialization of the
technologies. These forward-looking statements represent ImaRx's
judgment as of the date of this press release. Additional risks and
uncertainties related to ImaRx can be found in its filings with the
U.S. Securities and Exchange Commission. This press release is as
of May 7, 2008 and the Company disclaims any intent or obligation
to update these forward-looking statements. Contacts ImaRx
Therapeutics The Ruth Group (investors/media) Sara Ephraim/Jason
Rando DATASOURCE: ImaRx Therapeutics, Inc. CONTACT: Investors, Sara
Ephraim, ; Media, Jason Rando, , both of The Ruth Group for ImaRx
Therapeutics, Inc.
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