MISSISSAUGA, ON and MONTREAL, July 10, 2013 /PRNewswire/ - Nuvo Research Inc.
(TSX: NRI), a specialty pharmaceutical company dedicated to building a
portfolio of products for the topical treatment of pain and the
development of its immune modulating drug candidate WF10, and Paladin
Labs Inc. (TSX: PLB), a leading specialty pharmaceutical company today
announced that they have completed the amended loan arrangements (the
"Loan") the details of which were previously announced on June 17,
Under the terms of the amended arrangements, Nuvo has drawn down a
second $4.0 million loan tranche bringing the total amount currently
outstanding on the Loan to $5.9 million. The Loan bears interest at 15%
per annum. Paladin has been issued warrants to acquire 50,000 Nuvo
common shares at $1.82 per share being 130% of the 5-day trailing value
weighted average trading price ("VWAP") of Nuvo common shares on the
Toronto Stock Exchange. The warrants expire July 10, 2016.
"This $4.0 million Loan from Paladin together with the $4.5 million
upfront payment received today from Galen US Incorporated from its
acquisition of the exclusive U.S. marketing rights to the current
indication of our Synera patch, have substantially improved our cash
position," said Stephen Lemieux, Nuvo's Vice-President and Chief
Financial Officer. "We believe we now have the financial resources to
carry out our business plans through 2014, including completion of a
WF10 Phase 2 study for the treatment of allergic rhinitis which is a
major inflection point for Nuvo."
"We are pleased to support our partner, Nuvo Research, as it advances
the development of its key assets, in particular WF10," said Mark
Beaudet, interim President and CEO of Paladin Labs. "As a lender to
Nuvo, we support the Galen transaction which strengthens Nuvo's balance
About Nuvo Research Inc.
Nuvo is a publicly traded, Canadian specialty pharmaceutical company,
headquartered in Mississauga, Ontario. The Company is building a
portfolio of products for the treatment of pain through internal
research and development. The Company's product portfolio includes
Pennsaid®, Pliaglis and Synera®. Pennsaid, a topical nonsteroidal anti-inflammatory drug (NSAID), is
used to treat the signs and symptoms of osteoarthritis of the knee(s).
Pennsaid is sold in the United States by Mallinckrodt Inc., in Canada
by Paladin Labs Inc. and in several European countries. Pliaglis is a
topical local anesthetic cream which provides topical local analgesia
for superficial dermatological procedures. The Company has licensed
worldwide marketing rights to Pliaglis to Galderma Pharma S.A., a
global pharmaceutical company specialized in dermatology. Galderma
launched the marketing and sale of Pliaglis in the U.S. in March of
2013 and in the E.U. in April of 2013. Synera is a topical patch that
combines lidocaine, tetracaine and heat, approved in the United States
to provide local dermal analgesia for superficial venous access and
superficial dermatological procedures and in Europe, for surface
anaesthesia of normal intact skin. Nuvo has licensed the U.S.
marketing rights to Synera to Galen US Incorporated. Nuvo's European
licensing partner, Eurocept International B.V., has initiated a
pan-European launch of Synera (under the name Rapydan) in several
European countries. The Company is also developing WF10, for the
treatment of immune related disease.
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a leading
specialty pharmaceutical company focused on developing, acquiring or
in-licensing innovative pharmaceutical products for the Canadian
market. With this strategy, a focused national sales team and proven
marketing expertise, Paladin has evolved into one of Canada's leading
specialty pharmaceutical companies. Paladin's shares trade on the
Toronto Stock Exchange under the symbol PLB. For more information
about Paladin, please visit the Paladin Web Site at www.paladinlabs.com.
Nuvo Research Forward-Looking Statements
Certain statements in this news release constitute forward-looking
statements within the meaning of applicable securities laws.
Forward-looking statements include, but are not limited to, statements
concerning the Company's future objectives, strategies to achieve those
objectives, as well as statements with respect to management's beliefs,
plans, estimates, and intentions, and similar statements concerning
anticipated future events, results, circumstances, performance or
expectations that are not historical facts. Forward-looking statements
generally can be identified by the use of forward-looking terminology
such as "outlook", "objective", "may", "will", "expect", "intend",
"estimate", "anticipate", "believe", "should", "plans" or "continue",
or similar expressions suggesting future outcomes or events. Such
forward-looking statements reflect management's current beliefs and are
based on information currently available to management.
Forward-looking statements involve risks and uncertainties that could
cause actual results to differ materially from those contemplated by
such statements. Factors that could cause such differences include the
need for additional financing, the current economic environment,
dependence on sales and marketing partnerships, competitive
developments, as well as other risk factors included in the Company's
annual information form dated March 27, 2013 under the heading "Risks
Factors" and as described from time to time in the reports and
disclosure documents filed by the Company with Canadian securities
regulatory agencies and commissions. This list is not exhaustive of
the factors that may impact the Company's forward-looking statements.
These and other factors should be considered carefully and readers
should not place undue reliance on the Company's forward-looking
statements. As a result of the foregoing and other factors, no
assurance can be given as to any such future results, levels of
activity or achievements and neither the Company nor any other person
assumes responsibility for the accuracy and completeness of these
forward-looking statements. The factors underlying current
expectations are dynamic and subject to change. Although the
forward-looking information contained in this news release is based
upon what management believes are reasonable assumptions, there can be
no assurance that actual results will be consistent with these
forward-looking statements. Certain statements included in this news
release may be considered "financial outlook" for purposes of
applicable securities laws, and such financial outlook may not be
appropriate for purposes other than this news release. All
forward-looking statements in this news release are qualified by these
cautionary statements. The forward-looking statements contained herein
are made as of the date of this news release and except as required by
applicable law, the Company undertakes no obligation to publicly update
or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.
Paladin Labs Forward Looking Statement
This press release may contain forward-looking statements and
predictions. These forward-looking statements, by their nature,
necessarily involve risks and uncertainties that could cause actual
results to differ materially from those contemplated by the
forward-looking statements. The Company considers the assumptions on
which these forward-looking statements are based to be reasonable at
the time they were prepared, but cautions that these assumptions
regarding the future events, many of which are beyond the control of
the Company and its subsidiaries, may ultimately prove to be incorrect.
Factors and risks, which could cause actual results to differ
materially from current expectations, are discussed in the annual
report as well as in the Company's Annual Information Form for the year
ended December 31, 2012. The Company disclaims any intention or
obligation to update or revise any forward-looking statements whether
as a result of new information or future events and except as required
by law. For additional information on risks and uncertainties relating
to these forward-looking statements, investors should consult the
Company's ongoing quarterly filings, annual report and Annual
Information Form and other fillings found on SEDAR at www.sedar.com.
SOURCE Nuvo Research Inc.