MISSISSAUGA, ON, May 29 /PRNewswire-FirstCall/ - Nuvo Research Inc. (TSX:NRI), a Canadian drug development company focused on the research anddevelopment of drug products delivered to and through the skin using itstopical and transdermal drug delivery technologies, today announced that ithas licensed the exclusive rights from Paladin Labs Inc. (TSX: PLB) to developand commercialize a novel topical pain formulation with the potential to treatinflammatory and neuropathic pain conditions. The formulation is in thepre-clinical formulation development stage and is the subject of a pendingpatent application.
Nuvo will issue to Paladin 961,538 common shares having a value of$125,000 for the right to commercialize this topical pain product. As part ofthe transaction, Paladin may receive an additional payment of $250,000 uponachievement of a regulatory milestone and will have rights to market,distribute and sell the product in Canada, South America, Central America andSouth Africa. Nuvo will receive royalties on Paladin sales and will haveexclusive rights to exploit the licensed formulation in all other territories,including the United States.
Paladin has also invested $1,000,000 in return for 7,692,307 Nuvo commonshares and 769,230 warrants (representing 10% of the number of common sharesissued) by way of a private placement. Each warrant entitles Paladin toacquire one Nuvo common share during the three year period following theclosing at a price of $0.169. The value of the common shares issued to Paladinis based on Nuvo's weighted average trading price on the TSX for the five daytrading period ending May 20, 2008. The proceeds of the private placement willbe used by Nuvo for general corporate purposes, including expenses relating todevelopment of the licensed product.
"We are pleased to expand both our relationship with Paladin and ourtopical analgesic drug pipeline," said John London, Nuvo's Vice Chairman."Paladin's investment further strengthens our financial position as wecontinue to develop our early stage pipeline and move toward our resubmissionof Pennsaid for US approval in early 2009."
"The topical pain market is growing at a rapid rate and Nuvo, with its SanDiego based transdermal research centre, has established a global leadershipposition in terms of people, technology and infrastructure to successfullydevelop topical formulations and obtain regulatory approval for this promisingpain product," said Jonathan Ross Goodman, President and CEO of Paladin. "Weare pleased to license this technology to Nuvo and look forward to marketingand selling it in the future."
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a leadingspecialty pharmaceutical company focused on developing, acquiring orin-licensing innovative pharmaceutical products for the Canadian market. Withthis strategy, a focused national sales team and proven marketing expertise,Paladin has evolved into one of Canada's leading specialty pharmaceuticalcompanies. Paladin's shares trade on the Toronto Stock Exchange under thesymbol PLB. For more information about Paladin, please visit the Paladin website at www.paladinlabs.com.
About Nuvo Research Inc.
Nuvo is focused on the research and development of drug products deliveredto and through the skin using its topical and transdermal drug deliverytechnologies. Nuvo's lead product is Pennsaid(R), a topical non-steroidalanti-inflammatory (NSAID) used for the treatment of osteoarthritis. Nuvointends to leverage its skin-penetrating technologies to create a portfolio oftopical and transdermal products targeting a variety of indications.
Nuvo Research Inc. is a publicly traded, Canadian pharmaceutical companyheadquartered in Mississauga, Ontario, with manufacturing facilities inVarennes, Quebec and Wanzleben, Germany and a research and development Centerin San Di