VANCOUVER, Jan. 18, 2016 /CNW/ - iCo Therapeutics Inc.
("iCo" or "the Company") (TSX-V: ICO) (OTCQX: ICOTF), today
announced that effective immediately, in an effort to preserve its
asset base and maximize shareholder value, the company is
undertaking a strategic re-organization.
"Following the announcements of negative top-line and sub-group
iCo-007 data sets iCo commenced an exhaustive search for both
additional life science assets to acquire as well as potential
business combinations," remarked iCo Chief Executive Officer,
Andrew Rae. "To date, post a
detailed review of many opportunities, we have been unable to
conclude a value enhancing transaction which would have made sense
for iCo and its shareholders. Management continues to believe
that the current market capitalization of the Company does not
accurately reflect iCo's intrinsic value, given our current cash
position of approximately $3.38 million
dollars – after giving effect to all severance liabilities –
plus the value of our iCo-008 and Oral Amphotericin B assets.
Furthermore, raising equity capital at current share prices to
enhance the value of these assets would prove to be excessively
dilutive. Consequently, management is commencing a process to
preserve iCo's cash resources, continue development of existing
assets and investigate non-dilutive sources of funding for iCo-008
and the Oral Drug Delivery platform, while at the same time
maintain an ability to pursue new business opportunities."
Cash preservation: steps are now being taken to
significantly reduce iCo's monthly burn rate and fixed costs, which
includes the termination of all employees. Andrew Rae and John
Meekison will be retained in a reduced consulting capacity
to continue their CEO and CFO positions, respectively. It is also
anticipated that certain key persons including Dr. Peter Hnik who has acted as Chief Medical
Officer historically will also participate in a consulting
capacity. Remaining non-essential expenses will be eliminated.
Enhancing value of life science assets: iCo remains
very excited about our Israeli partner's progress with regards to
using Bertilimumab (iCo-008) to treat bullous pemphigoid and
ulcerative colitis, and data on these Phase II trials is expected
in H1 2016 and Q4 2016, respectively. Additionally, iCo
maintains all rights to use Bertilimumab for eye diseases, and will
continue exploring opportunities to partner this asset.
Oral Amphotericin B ("Oral AmpB"): iCo has
now entered the process of manufacturing scale-up for the Oral AmpB
compound in preparation for clinical trials. We are also
pursuing additional avenues to fund this program both in terms of
possible partnerships, potential non-dilutive funding such as
grants, and/or raising capital in such a way as not to be dilutive
to iCo's equity base. Recent efforts have focused on European
sources of capital and non-dilutive funds.
Continued search for new opportunities: in addition
to further developing our existing assets, Management will continue
to search for new business opportunities. Such a search will not be
restricted to the life science area, but will include other
industries which could enhance value for iCo's shareholders.
About iCo Therapeutics
iCo Therapeutics in-licenses
and redefines existing drug candidates or generics by employing
reformulation and delivery technologies for new or expanded use
indications. The Company holds worldwide rights to an oral drug
delivery platform, with Oral Amphotericin B (Amp B) as the initial
platform candidate, utilizing a known anti-fungal drug to treat
life-threatening infectious diseases. iCo also has worldwide
rights to two drug candidates: iCo-007 is a second generation
antisense drug candidate targeting C-Raf kinase and iCo-008 is a
monoclonal antibody targeting eotaxin-1. With Phase 2
clinical history, Bertilimumab (iCo-008) is a candidate for the
treatment of vernal or atopic keratoconjunctivitis and wet
age-related macular degeneration. iCo-008 is in Phase 2
clinical studies with iCo's partner, Immune Pharmaceuticals. iCo
trades on the TSX Venture Exchange under the symbol "ICO" and the
OTCQX under the symbol "ICOTF". For more information, visit the
Company website at: www.icotherapeutics.com.
No regulatory authority has approved or disapproved the
content of this press release. Neither the TSX Venture Exchange nor
its Regulatory Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
Forward Looking Statements
Certain statements
included in this press release may be considered forward-looking
statements" within the meaning of applicable securities laws.
Forward-looking statements can be identified by words such as:
"anticipate," "intend," "plan," "goal," "seek," "believe,"
"project," "estimate," "expect," "strategy," "future," "likely,"
"may," "should," "will," and similar references to future periods.
Such statements involve known and unknown risks, uncertainties and
other factors that may cause actual results, performance or
achievements to be materially different from those implied by such
statements, and therefore these statements should not be read as
guarantees of future performance or results. All forward-looking
statements are based on iCo's current beliefs as well as
assumptions made by and information currently available to iCo and
relate to, among other things, anticipated financial performance,
business prospects, strategies, regulatory developments, market
acceptance and future commitments. Readers are cautioned not to
place undue reliance on these forward-looking statements, which are
based only on information currently available to iCo and speak only
as of the date of this press release. Due to risks and
uncertainties, including the risks and uncertainties identified by
iCo in its public securities filings and on its website, actual
events may differ materially from current expectations. iCo
disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
SOURCE iCo Therapeutics Inc.