YMB YM Bio.'b'ser1

    YM BioSciences to acquire DELEX Therapeutics

 

    - Acquisition provides YM with third late-stage drug for the cancer

    market -

 

    MISSISSAUGA, ON, April 13 /CNW/ - YM BioSciences Inc. (AMEX:YMI, TSX:YM,

AIM:YMBA), the cancer product development company, today announced it has

entered into a binding agreement, subject to the fulfillment of certain

preconditions, in respect of the purchase of DELEX Therapeutics Inc.

(Mississauga, Canada), a private clinical stage biotechnology company

developing inhalation delivered fentanyl products to treat cancer pain,

pursuant to which DELEX will become a wholly-owned subsidiary of

YM BioSciences.

    DELEX is advancing AeroLEF(TM), a proprietary technology for the

treatment of acute and breakthrough pain, conditions that are common in cancer

patients and underserved by existing technology. AeroLEF(TM) is an inhalation

delivery system that delivers both free and liposomal encapsulated fentanyl,

an opioid drug widely prescribed to treat cancer pain. This product has

completed a Phase IIa trial with positive results and further efficacy trials

in acute and cancer pain are planned for initiation in 2005.

    "This acquisition is consistent with our model of acquiring products

suitable for clinical development and then applying our regulatory, clinical

and capital markets expertise to advance these products towards

commercialization rapidly and efficiently," said David Allan, Chairman and CEO

of YM BioSciences. "DELEX's late-stage product is an excellent fit within our

cancer-focused portfolio, targeting the substantial population of cancer

patients who experience severe pain. DELEX also comes with suitable resources

to advance this product through the next proposed Phase IIb pain trial without

requiring any additional cash investment by YM."

    "AeroLEF(TM) has the prospect of being a best-in-class product in the

multi-billion dollar pain market," said Diana Pliura, CEO of DELEX.

"AeroLEF(TM) is the only product designed to provide real-time patient

optimized pain relief during dosing and, through DELEX's proprietary ROSE-DS

formulation technology, that can produce rapid onset of relief combined with

extended relief - significant differentiators to competitive products in

development."

    On closing of the transaction, anticipated to occur in early May,

YM BioSciences will issue to the DELEX shareholders in consideration for their

shares and the accompanying working capital in DELEX 1,587,302 common shares.

In addition, YM will issue up to 4,603,175 common shares in escrow for the

benefit of the DELEX shareholders. These escrowed shares will be released in

tranches of approximately 456,349 common shares six, 12, 18 and 24 months

following closing. The remaining 2,777,779 escrowed shares will be released

from escrow upon achievement of specific milestones including the receipt of

an INDfor the planned Phase IIb trial, the conclusion of a strategic

partnership for further development and commercialization of the product, and

upon the initiation of Phase III trials. In addition, on receipt of U.S.

regulatory approval, if any, for AeroLEF(TM) or any product using DELEX's

technology, YM BioSciences will make an additional payment to the DELEX

shareholders of $4.75 million in cash or common shares or a combination of

both.

    The principal shareholders of DELEX, in addition to its founders and

management, are the New Generation Biotech (Equity) Fund Inc., a fund managed

by Genesys Capital Partners, BDC Venture Capital and the Eastern Technology

Seed Investment Fund Limited Partnership. Orion Securities and McFarlane

Gordon Inc. advised on the transaction.

 

    Notice of Conference Call

 

    YM will host a conference call to discuss this transaction on Monday,

April 18th, 2005 at 12:00pm EST. The call may be accessed by calling        

+ 1-416-640-4127 (from Europe) or 1-800-814-3911 (in North America). A live

operator will be available to assist you. An archive of the conference call

will be available until April 25th and can be accessed by dialing           

+ 1-416-640-1917 (from Europe) or 1-877-289-8525 (in North America) and

utilizing the participant code 21121537. The conference call will also be

audio cast live and archived for 90 days at http://www.ymbiosciences.com/

 

    About YM BioSciences

 

    YM BioSciences Inc. is a cancer product development company. Its lead

drug, tesmilifene, is a small molecule chemopotentiator currently undergoing a

700-patient pivotal Phase III trial in metastatic and recurrent breast cancer.

Published results from tesmilifene's first Phase III trial demonstrated a

substantial increase in survival in the same indication for women treated with

the combination of tesmilifene and chemotherapy compared to chemotherapy

alone, which demonstrated that tesmilifene significantly enhanced the

therapeutic effect of chemotherapy. In addition to tesmilifene, the Company is

developing TheraCIM-hR3, an EGFr humanized monoclonal antibody with positive

Phase II results in glioma and head & neck cancers, and a GnRH anti-cancer

vaccine that is in earlier stage clinical trials.

 

    Except for historical information, this press release may contain

forward-looking statements, which reflect the Company's current expectation

regarding future events. These forward-looking statements involve risk and

uncertainties, which may cause but are not limited to, changing market

conditions, the successful and timely completion of clinical studies, the

establishment of corporate alliances, the impact of competitive products and

pricing, new product development, uncertainties related to the regulatory

approval process and other risks detailed from time to time in the Company's

ongoing quarterly and annual reporting.

 

    For further information: Enquiries: James Smith, The Equicom Group Inc.,

Tel. (416) 815-0700 x 229, Email: jsmith(at)equicomgroup.com; Carolyn McEwen,

YM BioSciences Inc., Tel. (905) 629-9761, Fax (905) 629-4959, Email:

ir(at)ymbiosciences.com

    (YMBA)

 



END

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