EDMONTON, Dec. 17 /PRNewswire-FirstCall/ - BioMS Medical Corp. today provided the following update on corporate developments:
The Company has completed its substantive review of the data from the discontinued late-stage trials for dirucotide, its drug candidate for the treatment of multiple sclerosis (MS). BioMS has decided that it will explore a compassionate access and research program with limited financial commitment, but that it will not pursue further late stage clinical trials with dirucotide in MS.
BioMS earlier today announced a $12.0 million strategic investment in Spectral Diagnostics Inc., in exchange for approximately 48% of Spectral's issued and outstanding common shares, once the proposed transaction is completed. BioMS will also support Spectral and its management team in the development of its lead product, Toraymyxin(TM), in the US under a three-year $3 million contract to supply BioMS' management services to Spectral.
"Spectral represents the type of development opportunity that BioMS is seeking and ideally suited for: investment in a late-stage clinical program with a large market opportunity, and the ability to assist in the successful development of a project using our management expertise," said Kevin Giese, President and CEO of BioMS Medical. "BioMS will continue to leverage its resources and management team to pursue additional opportunities to realize shareholder value."
Spectral is a leader in the battle against sepsis. Spectral's Endotoxin Activity Assay (EAA(TM)) is the only FDA cleared assay for the measurement of endotoxin in the bloodstream. With the growing awareness for the role of endotoxemia in sepsis, the EAA(TM) can be used to identify patients, enable therapeutics and monitor treatment.
In March 2009, Spectral obtained exclusive US rights to Toraymyxin(TM), a therapeutic hemoprofusion device that removes endotoxin from the bloodstream. Toraymyxin(TM) has been used in more than 70,000 patients globally and has demonstrated in clinical trials that it safely and effectively removes endotoxin and reduces mortality in patients with severe sepsis. Spectral anticipates initiating a pivotal US trial with Toraymyxin(TM) in the first half of 2010.
For further information on the investment in Spectral please visit www.biomsmedical.com.
Chief Financial Officer
The Company reports that Don Kimak is leaving his position as chief financial officer of BioMS Medical effective December 31, 2009. Brent Johnston will serve as chief financial officer of BioMS Medical, following Mr. Kimak's departure.
"We would like to thank Don for his dedication and contributions to our Company over the past seven years. It has been a very positive and productive relationship and we wish Don the best of success in his future endeavors," said Kevin Giese, President and CEO of BioMS Medical.
Mr. Johnston is currently director of finance of BioMS Medical, and has over 11 years of experience in senior financial positions in public companies, including chief financial officer of ViRexx Medical. Mr. Johnston is a Chartered Accountant.
BioMS also reports that it has completed several organizational changes in order to reduce expenditures including a reduction in its staff by approximately half.
About BioMS Medical Corp.
BioMS Medical is a biotechnology company engaged in the investment, development and commercialization of pharmaceutical technologies. For further information please visit our website at http://www.biomsmedical.com.
This press release may contain forward-looking statements, which reflect the Corporation's current expectation regarding future events. These forward-looking statements involve risks and uncertainties that may cause actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, 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 Corporation's ongoing quarterly and annual reporting. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.