Microbix Biosystems Inc. and ImaRx Therapeutics Agree to Terminate Letter of Intent to Acquire Urokinase Inventory and Related Assets from ImaRx for $17M

TORONTO, June 11 /CNW/ - Microbix Biosystems Inc. (TSX:MBX - News) and ImaRx Therapeutics, Inc. (Nasdaq: IMRX - News) have agreed to terminate the previously announced letter of intent in which Microbix offered to acquire the urokinase inventory and related assets from ImaRx for $17 million.

Two recent events prompted this decision:

- ImaRx was notified by the FDA, after the LOI was signed, that additional testing would be required for approval of the urokinase stability testing program and release of labeled vials of urokinase.

- ImaRx subsequently informed Microbix that it intended to complete the additional urokinase stability testing and submit it to the FDA by August 2008 and that, as a result, ImaRx would not be in a position to begin sales of its labeled vials of urokinase with extended expiration dating until the Fall of 2008, assuming FDA approval. This was a materially different timeframe for product sales than contemplated in the LOI.

Microbix had intended to spin off its own urokinase assets into a new private company, Klarogen Biotherapeutics Inc., which would have purchased the urokinase assets of ImaRx.

Now that the LOI has been terminated, Microbix will continue to work with a number of parties and ImaRx to determine the most logical and fundable path forward with respect to the acquisition of the ImaRx urokinase assets.

Microbix specializes in the development of biological technologies and commercializing them through global partners. The Company has intellectual property in large market biotherapeutic drugs, vaccine technologies and animal reproduction technologies. Established in 1988, Microbix is headquartered in Toronto.

This press release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements including, without limitation, the risks associated with: failure of the parties, including Klarogen and ImaRx, to enter into another letter of agreement; failure of Klarogen to finance the acquisition from ImaRx; failure to develop and commercialize urokinase on a timely basis or at all; failure to complete due diligence to the satisfaction of either or both parties; and general risks associated with FDA approval and the commercialization of urokinase. These forward-looking statements represent the Companies' judgment as of the date of this press release. Additional risks and uncertainties related to ImaRx can be found in its filings with the U.S. Securities and Exchange Commission. This press release is as of June 11, 2008 and the Companies disclaim any intent or obligation to update these forward-looking statements.

For further information

visit www.microbix.com or contact: Phil Casselli, President, Microbix Biosystems Inc., (416) 234-1624 x 224 James Long, CFO, Microbix Biosystems Inc., (416) 234-1624 x 265

Source: Microbix Biosystems Inc.

Back to news