MONTREAL, QUEBEC--(Marketwire - November 30, 2009) - Ambrilia Biopharma Inc. (TSX: AMB) announced today that it has extended the exclusive license option agreement with ZBx Corporation that granted ZBx the worldwide rights to develop, manufacture and commercialize Ambrilia's PSP94 technology in ZBx's Zap™ Rapid Test System and Assays.
The terms of the extension provide an additional period ending on May 31, 2010. During this period, ZBx intends to have completed a third party evaluation of Ambrilia's PSP94 technology in the detection of prostate cancer and to advance the adaptation of the PSP94 technology to the ZAP™ Rapid Test System and other testing systems for commercial exploitation. At any time during the extended evaluation period, ZBx is entitled to exercise its option to an exclusive license, upon which Ambrilia would be eligible to receive up to a total of $US3.6 million with the achievement of all development and commercialization milestones. In addition, Ambrilia would be entitled to royalties on sales, as well as a percentage share of any sublicense proceeds. ZBx will cover all costs associated with the evaluation and future costs associated with the further development, manufacturing and commercialization. No additional financial details were disclosed.
Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the outcome of Ambrilia proceedings under the CCAA.
PSP94 (Prostate Secretory Protein) is one of three predominant proteins found in human seminal fluid along with prostate specific antigen (PSA) and prostate acid phosphatase (PAP). Studies have shown that PSP94 protein expression in the serum is lower (unlike PSA which goes up with cancer) in malignant versus benign versus healthy conditions of the prostate as it is believed to be a tumor suppressor. PSP94-based tests measure the amount of free PSP94, bound PSP94 and PSP94 binding protein present in the blood, the relative ratios of which have been shown to have clinical utility in prostate cancer prognosis, diagnosis and monitoring.
About Ambrilia Biopharma Inc.
Ambrilia Biopharma Inc. (TSX: AMB) is a biotechnology company focused on the discovery and development of novel treatments for viral diseases and cancer. The Company's strategy aims to capitalize on its broad portfolio and original expertise in virology. Ambrilia's product portfolio is comprised of oncology and antiviral assets, including two new formulations of existing peptides for cancer treatment, a targeted delivery technology for cancer, an HIV protease inhibitor program as well as HIV integrase and entry inhibitors, Hepatitis C virus inhibitors and anti-Influenza A compounds. Ambrilia's head office, research and development and manufacturing facilities are located in Montreal. For more information, please visit the Company's web site: www.ambrilia.com. The Company is currently subject to court protection under the Companies' Creditors Arrangement Act (Canada) ("CCAA").
About ZBx Corporation
ZBx develops unique rapid diagnostic platforms and assays using its proprietary small sample, whole blood testing technology. ZBx products are marketed under the trade name ZAP™ or OEM arrangements. The ZAP™ Test System makes single drop-of-blood sampling and a one-step testing procedure a practicality along with features of speed, accuracy and ease-of-use. ZBx was formed in 2002 to exploit and partner opportunities in the development and manufacture and commercialization of rapid diagnostic tests and assays in the fields of cardiology, oncology, infectious diseases, toxicology and others. ZBx's development and manufacturing capability has been certified under ISO 13485 as a Certified Medical Device Business. ZBx has also received its Medical Device Establishment License from the Therapeutic Products Directorate, Health Products and Food Branch of Health Canada. ZBx's head office, research and development and manufacturing facilities are located in Toronto. For more information, please visit the Company's web site: www.zbx.ca
Ambrilia's forward looking statements
This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward-looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, the timing and continuance of the CCAA protection, the uncertainty involved in the court proceedings and the implementation of any plan of arrangement under the CCAA, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the Company's filings. We refer you to the Risk Factors section of the Company's annual information form which contains a more exhaustive analysis of the risks and uncertainties that are generally connected to the business of the Company. Such statements are also based on various assumptions, including the successful and timely completion of clinical studies on Ambrilia's products demonstrating efficacy and safety for human use, their successful commercialization within the forecasted timelines and the attainment of the forecasted milestone payments and other revenues. Failure to complete a strategic or financial transaction as a result of the review of strategic alternatives could have a material adverse effect on Ambrilia. While Ambrilia anticipates that subsequent events and developments may cause Ambrilia's views to change, Ambrilia specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws.