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[news 2001-2002]
Nov. 28, 2001
Cellegy Pharmaceuticals
acquires PARTEQ spinoff Vaxis
KINGSTON, ON -- PARTEQ Innovations, the technology transfer
arm of Queen's University at Kingston, is pleased
to announce the acquisition of its spinoff company Vaxis
Therapeutics, by Cellegy Pharmaceuticals, Inc. of San
Francisco, CA, for Cdn$6 million. The deal, which enables
Cellegy to expand its product line in prescription drugs
for male and female sexual dysfunction, includes potential
earn-out payments of up to Cdn$11 million to Vaxis based
upon on the sales of future products.
Cellegy will continue to operate Vaxis as an ongoing
research and development entity in Kingston, ON, although
the name will change to Cellegy Canada, Inc.
Under the terms of the agreement, Cellegy replaces Vaxis
as PARTEQ's licensee for technologies developed
by Queen's researchers for the treatment of certain
peripheral vascular disorders, including male and female
sexual dysfunction, Raynaud's Disease, and Restless
Leg Syndrome. The Cellegy-Vaxis pipeline also includes
a promising, early-stage product for the treatment of
prostate cancer.
Cellegy conservatively estimates the overall market
for products that treat the conditions relating to the
technologies acquired from Vaxis to be in excess of
Cdn$1.5 billion per year in the U.S. alone.
"Cellegy's interest in both current and future
discoveries generated by Vaxis researchers
is clear acknowledgement of the leading role of Vaxis
as a developer of novel, viable technologies,"
says John Molloy, President and CEO of PARTEQ.
"We are delighted to welcome Cellegy as a partner
to lead the development of products based on Vaxis technology,"
he says. "Cellegy's presence in Kingston
further enhances the city's growing reputation
as a centre for Canadian biotechnology research and
commercialization."
"We are very pleased with this acquisition, not
only because of the products and the intellectual property
estate it brings, but also because it provides us with
access to pre-eminent researchers in the areas of sexual
dysfunction, peripheral vascular disorders and nitric
oxide pharmacology," says K. Michael Forrest, Chairman
and CEO of Cellegy.
Vaxis lead scientists Jeremy Heaton, a leading urologist
and professor of Urology and Pharmacology and Toxicology
at Queen's, Michael Adams, professor of Pharmacology
and Toxicology at Queen's, and Charles Graham,
associate professor of Anatomy and Cell Biology at Queen's,
will continue to work with Cellegy to complement the
company's research in these areas.
"Doctors Heaton and Adams are well known for their
contributions to the sexual dysfunction field and are
principal inventors of the use of apomorphine, the active
ingredient in the male sexual dysfunction products Uprima™
and Ixense, currently marketed by Abbott Laboratories
and Takeda Chemical Industries, respectively,"
Mr. Forrest says.
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About Cellegy Pharmaceuticals
Cellegy Pharmaceuticals, Inc. (Nasdaq: CLGY) is a specialty
biopharmaceutical company engaged in the development
and commercialization of prescription drugs, including
topical treatments for anal fissures and hemorrhoids
and hormone replacement therapy for men and women. The
company has also developed a line of high performance
skin care products.
www.cellegy.com
About PARTEQ Innovations
PARTEQ Innovations is a not-for-profit corporation which
acts as the technology transfer agent for Queen's University
at Kingston. PARTEQ is a leader in the commercialization
of university intellectual property in Canada, with
revenues over the last two years exceeding $13 million.
www.parteq.queensu.ca
Contacts:
Cellegy:
K. Michael Forrest
Chairman, President & CEO
(650) 616-2200 ext. 2206
Richard Juelis
Vice-President, Finance & CFO
(650) 616-2200 ext. 2210
PARTEQ:
John Molloy,
President & CEO
(613) 533-2342
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