VANCOUVER, Dec. 6 /PRNewswire-FirstCall/ - Inex Pharmaceuticals Corporation ("INEX"; TSX: IEX) announced today that Timothy M. Ruane, President and Chief Operating Officer, has been appointed President and Chief Executive Officer (CEO) of the Company effective immediately.
Darrell J. Elliott, Chairman of the Board, said the appointment reflects the leadership and management acumen that Ruane has demonstrated since he was appointed to the position of President and Chief Operating Officer June 21, 2005.
"The Board of Directors is confident that Tim is the right person to lead the Company through the reorganization we announced November 17, 2005," Elliott said. "His experience in the business of cancer drug development and corporate development makes Tim ideally qualified to be President and CEO of INEX at this pivotal time in its history."
INEX is proposing a reorganization that would include the spin-off of its Targeted Immunotherapy technology and product candidates into a new company. If the proposal is approved by shareholders and the Supreme Court of British Columbia, the majority of shares in the new public company would be distributed to INEX shareholders.
On January 6, 2006, INEX will ask the Supreme Court of British Columbia to rule on whether the proposed plan can be completed given INEX's current outstanding convertible debt. INEX has scheduled the shareholder meeting to approve the reorganization for January 26, 2006 and has established a record date of November 28, 2005.
The reorganization would enable the new debt free company to focus on the Targeted Immunotherapy program and raise the additional capital necessary to advance this technology. The new company would give INEX shareholders a direct investment in this promising early-stage area of research. This reorganization would also allow INEX to continue its focus on extracting value via partnering from its late-stage Targeted Chemotherapy platform including Marqibo(TM), INX-0125 (sphingosomal vinorelbine) and INX-0076 (sphingosomal topotecan).
INEX intends to complete the reorganization by way of a Plan of Arrangement under the Business Corporations Act (British Columbia). INEX has notified Stark Trading and Shepherd Investments International Ltd. (collectively "Stark"), the majority note holder, of the Plan of the Arrangement. The promissory notes are not due until April 2007 and can be repaid in cash or in shares, at INEX's option, at maturity.
INEX announced November 8, 2005 that it received notice that Stark will appeal the October 27, 2005 decision of the Supreme Court of British Columbia dismissing a bankruptcy petition brought forward by Stark. A court date of February 13, 2006 has been set for this appeal.
Ruane said INEX believes the dismissal of the Stark bankruptcy petition by the Supreme Court was correct and the Company will continue to defend its position vigorously.
"We are confident that the January 6th hearing will result in our shareholders receiving the clarity they need to approve our reorganization plan on January 26th," Ruane said. "We believe that at the February 13th hearing, the appeal of the dismissal of the bankruptcy petition will be determined by the Court of Appeal to be baseless."
"At that point, we can complete the reorganization transaction. In the meantime, we are continuing to operate our business to maximize the value of our assets for all stakeholders," Ruane said.
Ruane joined INEX as Senior Vice-President, Corporate Development, on December 22, 2004 after his previous employer, ILEX Oncology, was acquired by Genzyme Corporation. He joined ILEX as Senior Vice-President, Business Management in February 2002 and served as a member of the senior management team that led the conversion of ILEX from a services-based oncology contract research organization (CRO) into an oncology product-focused pharmaceutical company.
Previous to ILEX, Ruane was Senior Director, Global Oncology Commercial Development, at Pharmacia Oncology and was responsible for all oncology franchise in-licensing and pipeline development. He has a BS from Wake Forest University and an MBA from the University of Washington.
About INEX
INEX is a Canadian biopharmaceutical company developing and commercializing proprietary drugs and drug delivery systems to improve the treatment of cancer. Further information about INEX can be found at www.inexpharm.com.
Forward Looking Statements
There are forward-looking statements contained herein that are not based on historical fact, including without limitation statements containing the words "believes," "may," "plans," "will," "estimate," "continue," "anticipates," "intends," "expects," and similar expressions. Such forward- looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, events or developments to be materially different from any future results, events or developments expressed or implied by such forward-looking statements. Such factors include, among others, INEX's stage of development, lack of product revenues, additional capital requirements, risks associated with the completion of clinical trials and obtaining regulatory approval to market INEX's products, the ability to protect its intellectual property and dependence on collaborative partners. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments.
Contact Information
Investors Ian Mortimer Vice President, Finance and Chief Financial Officer Phone: 604-419-3200 Email: info@inexpharm.com Website: www.inexpharm.com
Media Karen Cook Boas James Hoggan & Associates Inc. Phone: 604-739-7500 Email: kcook@hoggan.com
-------------------------------------------------------------------------------- Source: Inex Pharmaceuticals Corporation
