WINNIPEG, MANITOBA--(MARKET WIRE)--Feb 5, 2009 -- DiaMedica Inc. (CDNX:DMA.V - News), a drug discovery and clinical development company focused on novel treatments for type 2 diabetes today announces the appointment of Mr. Reginald (Reggie) Bowerman to the position of President and Chief Executive Officer. He will assume leadership responsibilities beginning on February 9, 2009.
Mr. Bowerman has spent the past 23 years in various roles in the pharmaceutical industry, most recently as Vice President, Commercial Operations of MGI Pharma (MGI). MGI, formerly headquartered in Bloomington, Minnesota, was purchased by Eisai Inc., a New Jersey based pharmaceutical company, in early 2008 for US $3.9 billion. All of MGI’s Minnesota based operations were closed and relocated to other Eisai facilities by the end of 2008. Mr. Bowerman will be based in Minneapolis.
“We are excited that Mr. Bowerman is joining DiaMedica in a senior leadership capacity,” stated Rick Pauls, current President and CEO of DiaMedica. “Mr. Bowerman’s long track record of commercial success, exceptional leadership, interpersonal and organizational skills, along with a diverse industry background in the pharmaceutical sector will guide DiaMedica as we continue to develop into a world class biopharmaceutical company. The widely recognized success of MGI Pharma as a biopharmaceutical company, in which Mr. Bowerman played a key leadership role, will provide him with significant insights into where we seek to move DiaMedica going forward.”
“I am very eager to become a part of DiaMedica at such a critical time in its growth. I look forward to helping lead the organization reach important milestones in its overall growth and development.” stated Mr. Bowerman.
“This appointment reinforces DiaMedica’s commitment to creating a biopharmaceutical company that will be a leader in developing therapeutics for type 2 diabetes” continued Mr. Pauls. “Strategic advisors for DiaMedica include two past presidents of the American Diabetes Association in addition to individuals who are business leaders within the pharmaceutical and biotechnology industry.”
With the appointment of Mr. Bowerman, Mr. Rick Pauls is stepping down as President and CEO of DiaMedica, effective immediately. Mr. Pauls will continue to serve as Chairman on the board of directors and work closely with Mr. Bowerman during the transition.
Pursuant to this appointment, DiaMedica has granted 500,000 stock options at an exercise price of $1.00 per share to Mr. Bowerman in accordance with the Company’s stock option plan. The options are subject to regulatory approval.
About Reggie Bowerman
Mr. Bowerman’s tenure spans 23 years, all within the pharmaceutical industry. He began his career with Marion Laboratories, itself a small pharmaceutical company success story, and remained with the company through a series of mergers and acquisitions, becoming Marion Merrell Dow Pharmaceuticals, Hoechst Marion Roussel, and finally Aventis. He joined MGI Pharma in 2000 and provided commercial leadership that helped transform the company into an oncology focused biopharmaceutical success culminating in its purchase by Eisai Inc. in early 2008 for US $3.9 billion. During his career, Mr. Bowerman has held a variety of commercial positions with increasing responsibility including sales, brand management, international marketing, account management, and alliance management. He has assisted in the launch and subsequent commercial success of several leading products from different therapeutic categories. While at MGI, he was heavily involved in the acquisition and integration of several companies and licensed compounds, as well as the out-licensing of MGI products outside of the United States. Mr. Bowerman has earned a Bachelors Degree from Graceland University, an MBA from Rockhurst University, and a Juris Doctorate from the Hamline University School of Law. He also serves as a Director on the Shakopee Minnesota Public School Board.
Diabetes is a widespread and rapidly growing disease, affecting over 180 million people world wide. Over 90% of people with diabetes are being diagnosed with the type 2 form of the disease. According to the World Health Organization, this number is expected to double during the next 15 years while the American Diabetes Association has estimated the annual economic cost in 2007 to the United States to be $174 billion. Global sales of oral diabetes drugs total $8 billion today and are expected to climb to $12 billion by 2011.
About DiaMedica
DiaMedica is developing novel treatments for type 2 diabetes based on a newly discovered ‘nerve reflex’ mechanism for which the Company has been issued two U.S. patents. DiaMedica completed a successful phase II trial with its lead product, DM-71, which demonstrated the ability to reduce HbA1c (blood sugar) levels and weight in humans. DiaMedica also completed a successful phase II trial with its second compound, DM-83, designed to measure changes in insulin and glucose. The success of this clinical trial was highly significant as DiaMedica believes it validates the novel ‘nerve reflex’ mechanism that would designate the Company’s drugs as first-in-class. The Company’s third drug in clinical development, DM-99, will complete a phase II trial in Q1 2009. Preclinical results from Vanderbilt University have shown that DM-99 is able to cause tissue to increase its uptake of sugar from the blood by over 40% (p less than 0.001) during the first 60 minutes of treatment. DM-199, a 40x more biologically active version of DM-99, has been created with the expectation that it will be developed into a once-a-week injection. DiaMedica has been recognized as one of the Top Ten(TM) Life Science companies in Canada for the past two years by the Ottawa Centre for Research and Innovation.
Caution Regarding Forward-Looking Information
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable Canadian provincial securities legislation (collectively, “forward-looking statements”). These forward-looking statements relate to, among other things, our objectives, goals, targets, strategies, intentions, plans, beliefs, estimates and outlook, including, without limitation, our anticipated future operating results, and can, in some cases, be identified by the use of words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “will,” “may” and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements.
These statements reflect management’s current beliefs and are based on information currently available to management. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: DiaMedica’s early stage of development, lack of product revenues and history of operating losses, uncertainties related to clinical trials and product development, rapid technological change, uncertainties related to forecasts, competition, potential product liability, additional financing requirements and access to capital, unproven markets, supply of raw materials, income tax matters, management of growth, partnerships for development and commercialization of technology, effects of insurers’ willingness to pay for products, system failures, dependence on key personnel, foreign currency risk, risks related to regulatory matters and risks related to intellectual property and other risks detailed from time to time in DiaMedica’s filings with Canadian securities regulatory authorities, as well as DiaMedica’s ability to anticipate and manage the risks associated with the foregoing. Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found in the body of this news release, as well as under the heading “Risk Factors” contained in DiaMedica’s final long-form prospectus dated March 12, 2007. DiaMedica cautions that the foregoing list of important factors that may affect future results is not exhaustive. When relying on DiaMedica’s forward-looking statements to make decisions with respect to DiaMedica, investors and others should carefully consider the foregoing factors and other uncertainties and potential events.
These risks and uncertainties should be considered carefully and prospective investors should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, DiaMedica cannot provide assurance that actual results will be consistent with these forward-looking statements. DiaMedica undertakes no obligation to update or revise any forward-looking statement.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. Contact:
Contacts: DiaMedica Inc. Kevin Richardson, Ph.D. (204) 918-3868 (204) 453-3745 (FAX) Email: krichardson@diamedica.com Website: http://www.diamedica.com
Source: DiaMedica Inc.
