BioSpace.com

Biotech and Pharmaceutical
News & Jobs
Search the Site
 
   
Biotechnology and Pharmaceutical Channel Medical Device and Diagnostics Channel Clinical Research Channel BioSpace Collaborative    Job Seekers:  Register | Login          Employers:  Register | Login  

NEWSLETTERS
Free Newsletters
Archive
My Subscriptions

NEWS
News by Subject
News by Disease
News by Date
PLoS
Search News
Post Your News
JoVE

CAREER NETWORK
Job Seeker Login
Most Recent Jobs
Browse Biotech Jobs
Search Jobs
Post Resume
Career Fairs
Career Resources
For Employers

HOTBEDS
Regional News
US & Canada
  Biotech Bay
  Biotech Beach
  Genetown
  Pharm Country
  BioCapital
  BioMidwest
  Bio NC
  BioForest
  Southern Pharm
  BioCanada East
  US Device
Europe
Asia

DIVERSITY

INVESTOR
Market Summary
News
IPOs

PROFILES
Company Profiles

START UPS
Companies
Events

INTELLIGENCE
Research Store

INDUSTRY EVENTS
Biotech Events
Post an Event
RESOURCES
Real Estate
Business Opportunities

 News | News By Subject | News by Disease News By Date | Search News
eNewsletter Signup
Miles
Km80.5

   

Exclusive License Agreement for Modified Release Beraprost Assumed and Restated by LungRx Inc. (UTHR)


3/28/2007 11:40:58 AM

SILVER SPRING, Md., March 27 /PRNewswire-FirstCall/ -- Lung Rx, Inc., a wholly-owned subsidiary of United Therapeutics Corporation , today announced that it has entered into an agreement with Toray Industries, Inc. ("Toray") to assume and restate the rights and obligations of the agreement entered into between United Therapeutics and Toray in June 2000 concerning the commercialization of modified release formulations of the cardiovascular medicine beraprost.

In connection with the restated and assumed Agreement, on March 17, 2007 United Therapeutics issued 200,000 shares of its common stock to Toray in exchange for the cancellation of Toray's existing right to receive an option grant to purchase 500,000 shares of United Therapeutics' common stock (the "Option Grant"). Under the June 2000 Agreement, Toray's right to receive the Option Grant was conditioned on Toray delivering adequate documentation of sustained release beraprost in humans and its transfer of clinical trial material, which delivery has not yet occurred. Had the Option Grant been made, the exercise price of the options would have been set at the average closing price of United Therapeutics' common stock for one month prior to the delivery date. Under the terms of the assumed and restated agreement, Toray has the right to request that United Therapeutics repurchase the newly-issued 200,000 shares of common stock upon thirty days prior notice at the price of $54.41 per share, which is the average closing price of United Therapeutics' stock between January 11, 2007 and February 23, 2007. Based on the closing price of United Therapeutics' stock on March 16, 2007, United Therapeutics will recognize a research and development expense of approximately $11.1 million in March relating to the issuance of the 200,000 shares since modified release beraprost has not yet obtained regulatory approval and currently has no alternative future uses.

Under the assumed and restated agreement, Toray will use its best efforts to deliver modified release beraprost documentation and clinical trial material to Lung Rx prior to the end of 2007 based, in part, on its recent application for approval of modified release beraprost in Japan.

"Beraprost has a clear and convincing mechanism of action," said Lewis J. Rubin, MD, Professor of Medicine and Director, Pulmonary Hypertension Program at University of California, San Diego School of Medicine, and Chairman of Lung Rx's Scientific Advisory Board. "I expect that many centers of excellence will want to participate in the clinical development of its modified release formulation."

"We are excited about bringing modified release beraprost to the pulmonary hypertension community," said Martine Rothblatt, Ph.D., Chairman and Chief Executive Officer of Lung Rx. "The tremendous pharmacogenomic variability in the patient population cries out for multiple unique molecules both beyond and within the prostacyclin class that includes beraprost."

United Therapeutics is a biotechnology company focused on the development and commercialization of unique products for patients with chronic and life- threatening cardiovascular, cancer and infectious diseases.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements about the delivery by Toray Industries, Inc. of modified release beraprost documentation and clinical trial material to Lung Rx prior to the end of 2007 that are based on United Therapeutics' current beliefs and expectations as to future outcomes. These expectations are subject to risks and uncertainties such as those described in United Therapeutics' periodic reports filed with the Securities and Exchange Commission which may cause actual results to differ materially from anticipated results. Consequently, such forward-looking statements are qualified by the cautionary statements, cautionary language and risk factors set forth in United Therapeutics' periodic reports and documents filed with the Securities and Exchange Commission, including the company's most recent Form 10-K and Form 10-Q. United Therapeutics is providing this information as of March 27, 2007 and undertakes no obligation to publicly update or revise the information contained in this press release whether as a result of new information, future events or any other reason.

United Therapeutics Corporation

CONTACT: Andrew Fisher of United Therapeutics Corporation,+1-202-483-7000, Afisher@unither.com



Read at BioSpace.com

   

ADD TO DEL.ICIO.US    ADD TO DIGG    ADD TO FURL    ADD TO STUMBLEUPON    ADD TO TECHNORATI FAVORITES