Edmonton business news: Brick, Churchill, Isotechnika
Edmonton Journal
May 7, 2009
Isotechnika joins Paladin to market psoriasis drug
EDMONTON — Isotechnika (TSX: ISA) has signed a partnership deal with Montreal’s Paladin Labs for commercialization of its lead drug Voclosporin for the treatment of psoriasis.
Isotechnika will receive $7 million in cash and $4.35 million to further develop the drug, and will own 81 per cent of a new public company called Isotechnike Pharma Inc. Senior management of Isotechnika will continue with Isotechnika Pharma.
“The combination of this financing and share reorganization provides Isotechnika shareholders with a solid balance sheet to deliver on key milestones and business objectives,” Isotechnika CEO Robert Foster said. “We are pleased to be able to secure capital in such a difficult market, while retaining the rights to market Voclosporin in the largest, most strategic markets, including the U.S., Europe, Japan and Asia.”
The company also gains a strategic partner for key pharmaceutical markets, including Canada, he added.
Paladin CEO Jonathan Ross Goodman said the recent positive Phase III trial suggests the drug will find a profitable niche treating psoriasis patients, “and we are excited by the much larger market opportunity for Vocolosporin in the transplant indication.”
Isotechnika shares rose 13 per cent to 17.5 cents in morning trading.