NEW YORK, July 25 /PRNewswire-FirstCall/ - Genesis Bioventures, Inc. (GBI) today announced that the Company has signed a non-binding Letter of Intent to acquire the assets of Prion Developmental Laboratories Inc. (PDL). The transaction would be expected to close within sixty to ninety days, but is subject to completion of company due diligence.
GBI currently holds approximately 44% equity interest in PDL and intends to establish the diagnostic business as a wholly owned subsidiary. The founding scientists at PDL, Dr. Richard Rubenstein and Dr. Robert B. Petersen, would continue with the newly formed company as officers and directors of the new company. As 100% owner of PDL assets, GBI would then have full control over the technology developed by PDL, would not pay royalties and would be able to exploit the technology and receive royalties and other fees from other outsourcing opportunities. The Company believes this acquisition further ensures PDL’s technology reaches customers faster than under the current ownership structure.
GBI has worked closely with PDL in the development of the patented Rapid Prion-Detection Assay tests developed by PDL. In February 2006, the Company was granted exclusive worldwide sales, marketing and distribution agreements from PDL to commercialize the tests and announced last month that it had granted an exclusive sublicense for commercialization in the Pacific Rim. The proposed acquisition of assets completes GBI’s commitment to commercialize the PDL Rapid Assays globally.
“This Letter of Intent is a continuation of GBI’s prior interest in acquiring the remaining balance of PDL not owned by GBI,” stated GBI’s President and CEO, Douglas C. Lane. “We are committed to establishing a successful diagnostic company based on the patented products developed by Dr. Rubenstein and Dr. Petersen to detect prion diseases such as Mad Cow. The BSE rapid assay has two compelling attributes: the speed and accuracy of the test makes it economically feasible for producers to test all cattle where currently less than 1% of cattle in the US are tested. Additionally, the specificity of the test creates a strong economic incentive for producers, as we understand from industry experts, as concerned consumers are willing to pay a premium for beef that is tested free of BSE. Ensuring food safety is especially significant today as we continue to see new cases of BSE infected cattle being detected.”
The Rapid Prion-Detection Assay is designed to test for prion diseases, such as Bovine Spongiform Encephalopathy (BSE), or mad cow disease, directly at the point-of-kill rather than in a laboratory. The Assay is an easy-to-use rapid test strip that can be administered by trained individuals and would generate results at the producer’s site in less than an hour allowing producers to know if the animal is infected with BSE before it is processed. The tests are inexpensive and the Company believes this would pave the road for the industry to test all cattle for the lethal disease destined for human consumption, and would create a commercial incentive for producers to voluntarily support testing of all cattle as wholesalers and retailers claim beef certified “BSE Free” would command 15% to 35% premium pricing for an added cost of about a penny a pound.
PDL’s BSE Rapid Assay has completed scientific and technical development and is in final commercial development for global commercialization. The assay has been scientifically validated on BSE infected specimens with 100% Sensitivity (no false negative results) and 100% Specificity (no false positive results) which is required for regulatory approval to sell the product in all major markets in the world.
About Prion Developmental Laboratories
PDL is a leading biotechnology company that researches, develops and produces advanced diagnostic and food safety monitoring tests for human and animal diseases caused by prions. Genesis Bioventures, Inc. has a significant investment in PDL.
About Genesis Bioventures, Inc.
Genesis Bioventures, Inc. is a biomedical development corporation focusing on the development and marketing of novel diagnostics and therapeutics in oncology and neurodegenerative diseases.
This press release may contain statements that constitute “forward-looking statements” as defined under U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “establish,” “project” and similar expressions identify forward-looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from Genesis’ historical experience and its present expectations or projections. These risks include, but are not limited to: actual use of the Rapid Prion Detection assays in slaughterhouses; actual commercialization of assays for transmissible spongiform encephalopathies in animals and humans; GBI’s ability to transition its corporate restructuring; to generate revenues and net income; ability to obtain personnel and directors familiar with investment, biotechnology, and pharmaceutical industries; commercialization of products through Prion Developmental Laboratories; our ability to become an industry leader; changes in economic conditions; the competitive environment within the biomedical industry; GBI’s ability to capture market share; the effectiveness of GBI’s advertising and marketing programs; ability to raise additional capital; ability to achieve earnings goals; regulatory and legal changes; ability to penetrate developing and emerging markets; litigation uncertainties; and other risks discussed in GBI’s filings with the SEC, including the Annual Report on Form 10-KSB, Quarterly Reports on Form 10-QSB, and Current Reports on Form 8-K, which reports are available from the SEC. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. We undertake no obligation to publicly update or revise any forward-looking statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
CONTACT: GBI Investor Relations: (604) 542-0820, gbi@gnsbio.com, www.gnsbio.com; Aurelius Consulting Group: (800) 644-6297, info@aurcg.com, www.runonideas.com
Genesis Bioventures, Inc.
CONTACT: GBI Investor Relations: (604) 542-0820, gbi@gnsbio.com,www.gnsbio.com; Aurelius Consulting Group: (800) 644-6297, info@aurcg.com,www.runonideas.com
