SOUTH SAN FRANCISCO, Calif. and SECAUCUS, N.J., Dec. 16 /PRNewswire-FirstCall/ -- Corgentech Inc. (Nasdaq: CGTK - News) and AlgoRx Pharmaceuticals, Inc. announced today that following stockholder approval of the merger by the stockholders of both companies, the merger was completed on December 15, 2005. The merger creates a late-stage company with four clinical development candidates focused on pain management and inflammation. In connection with the merger, Corgentech stockholders also approved a one-for- four reverse stock split, which was also effected on December 15, 2005. Corgentech common stock will trade on the Nasdaq National Market on a split- adjusted basis commencing December 16, 2005 under the temporary symbol "CGTKD." After 20 trading days, the symbol for Corgentech common stock will revert back to "CGTK."
"We expect to have four products in clinical trials in 2006, the most advanced for which we expect to file a New Drug Application (NDA) during the year," stated John P. McLaughlin, chief executive officer of Corgentech. "Since the merger announcement in September, there have been three positive clinical data updates on our products under development in pain management, and we have completed enrollment in both ongoing trials in inflammation. We look forward to providing additional updates on our development progress in the coming year."
Deep Product Pipeline Addressing Significant Unmet Medical Needs
With a seasoned management team and a projected combined cash position of $90 million at the end of 2005, Corgentech is developing a deep pipeline addressing significant unmet medical needs:
-- ALGRX 3268 has had positive, statistically significant results from two Phase 3 trials, and the company expects to file an NDA during 2006 for the reduction of pain associated with venipunctures and intravenous line placements. ALGRX 3268 is based on a needleless injection system which accelerates lidocaine particles, in powder form, into the epidermis in order to anesthetize nerves. The product, which may be especially useful in pediatric populations and emergency room settings, is easy to use and anesthetizes quickly-generally in one minute-offering an important advantage over currently available therapies.
-- ALGRX 4975, a VR1 agonist, is being developed for site-specific, moderate to severe pain. It is a C-neuron anesthetic, based on capsaicin. It is long-acting, providing pain relief to many patients for weeks or months after a single treatment. ALGRX 4975 has demonstrated its potential in multiple clinical studies to impact pain in neuropathic, post-surgical and musculoskeletal pain conditions. Phase 2 clinical trials are currently underway for post-surgical pain following a variety of surgeries including hernia repair, total knee replacement and cholecystectomy.
-- Avrina(TM) is a highly selective and potent inhibitor of the transcription factor, NF-kappaB, which is implicated in inflammatory diseases such as eczema, asthma and inflammatory bowel disease (IBD). Recently Corgentech completed enrollment in two Phase 1/2 multi-center, randomized, double-blind, placebo-controlled trials evaluating the safety and tolerability of applications of Avrina to the skin of adult patients with mild-to-moderate eczema. Results from these studies are expected in the first quarter of 2006.
-- ALGRX 1207 is a new class of anesthetic that is in preclinical development as a topical local anesthetic. This product is expected to enter clinical trials for cutaneous neuropathic pain, such as chemotherapy-induced neuropathy, in 2006. This product candidate may have a faster onset and longer duration of action as well as improved penetration when compared with products currently on the market.
Under terms of the agreement, Corgentech has issued, and AlgoRx stockholders have received in a tax-free exchange, shares of Corgentech common stock such that AlgoRx stockholders own approximately 62 percent of the combined company on a pro forma basis and Corgentech stockholders own approximately 38 percent. Corgentech's South San Francisco office will be the company's headquarters with facilities as well in Secaucus, NJ. Following the completion of the merger and the reverse stock split, Corgentech has approximately 20.1 million shares outstanding. The proposed merger transaction was first announced in a joint press release on September 26, 2005.
Corgentech is a biopharmaceutical company focused on the development and commercialization of novel therapeutic treatments for pain management and inflammation. Corgentech is based in South San Francisco, CA. For more information on the company, please visit www.corgentech.com.
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as "expect," "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements. Forward- looking statements in this press release include, without limitation, clinical results forecasts of product development, FDA filings and other matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: whether Corgentech can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward- looking statements in this press release. Additional information concerning these and other risk factors is contained in Corgentech's Form S-4 as well as Corgentech's Form 10-K/A for the year ended December 31, 2004 and most recently filed Form 10-Q.
Corgentech undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.
Source: Corgentech Inc.