Riso Pharma guarantees to purchase 50,000 KINLYTIC vials over next three years
TORONTO, Nov. 17 /PRNewswire-FirstCall/ - Microbix Biosystems Inc. (MBX:TSX), a biotech company focused on virology and biological technologies, today announced a marketing and supply agreement with Riso Pharma that guarantees purchases of not less than 50,000 KINLYTIC vials over the next three years. KINLYTIC (Urokinase) is Microbix' thrombolytic agent for treating pulmonary embolism.
Under the terms of the agreement, Microbix will grant Riso exclusive rights to market KINLYTIC throughout the Middle East. Microbix will share in the revenues from KINLYTIC sales in all countries covered by the agreement and Riso will be responsible for all commercialization activities. Microbix expects KINLYTIC sales to commence around mid-year 2010.
Mark A. Cochran, Microbix' Chief Business Officer, said, "Microbix is off to a great start as we bring KINLYTIC back to the world's medical community. We expect to provide our clot-busting therapy to other parts of the world by signing additional agreements, such as this one, throughout 2010. And, while final pricing for our therapy has not been yet established, even at a discounted pricing offered to these emerging markets, Microbix will profit substantially from this agreement covering the Middle East."
The market for pharmaceutical sales in the Middle East is valued today at $12 billion and is expected to grow 10 to 15 percent annually, according to published pharmaceutical market reports. Growth in this region is being forecast for the pharmaceutical and biotechnology industries due to moves by Middle Eastern nations to liberalize national economies and introduce universal health care coverage.
P. Daniel Bagi, M.D., Managing Director of Riso Pharma, said, "We are very pleased to add KINLYTIC to our diverse product offerings throughout the Middle East. As with all of our product sales, we expect KINLYTIC to achieve annual sales of several million dollars in the region."
Urokinase, which Microbix has re-branded as KINLYTIC, has been administered to over four million patients and generated peak annual worldwide sales of more than $300 million, prior to Abbott Laboratories discontinuing sales several years ago due to manufacturing issues. With all outstanding manufacturing issues resolved, Microbix is now the only worldwide source of low-molecular-weight urokinase.
In 2008, Microbix completed a $2.5 million acquisition of all Urokinase assets from ImaRx Therapeutics. Microbix holds more than 100,000 doses of urokinase inventory which it expects will supply market needs for nearly three years. With revenues from product sales, Microbix expects to scale up KINLYTIC manufacturing at its Skyway production facility in Toronto in time to re-supply its inventory with capacity to produce $70 million worth of product annually.
Microbix specializes in the development of biological technologies and commercializing them through global partners. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Established in 1988, Microbix is headquartered in Toronto.
Riso Pharma Tech is a Canadian-based affiliate of a large Holding Company, Riso Holding. As a group, Riso has sole agency agreements with some of the largest pharmaceutical companies in the world for Middle Eastern market. Riso is also a provider of medicinal products and health care supplements serving dedicated markets world-wide, but focusing on the Middle East, North Africa and Latin America.
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 failure to complete agreements to license, finance, develop and commercialize KINLYTIC on a timely basis, non-adoption of KINLYTIC, resistance to business model for commercialization and implementation; and risks associated with the efficacy of the drug. Risks related to timeliness, delay or failure to obtain local market regulatory approvals or to enter into marketing and supply agreements on acceptable terms or at all; risk of under-performance or non-performance by counter parties; accuracy of estimates of market and supply adequacy; ability to achieve market acceptance, sales and revenue generation on a timely basis or at all; product pricing risks; ability to fund from revenue or otherwise timely manufacturing scale up and to achieve manufacturing capacity, successful expansion of the drug into new indications and new markets. These forward-looking statements represent the Company's judgment as of the date of this press release. The Company disclaims any intent or obligation to update these forward-looking statements.
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SOURCE Microbix Biosystems Inc.