Hepalink paid $8 million (the “Fee”) to Resverlogix in consideration for the right of first refusal granted.
CALGARY, Alberta, Oct. 24, 2017 (GLOBE NEWSWIRE) -- Resverlogix (“Resverlogix” or the “Company”) (TSX:RVX) announced that it has entered into a Right of First Refusal Agreement (the “Agreement”) with Hepalink USA Inc. (“Hepalink USA”). Under the Agreement, Hepalink USA was granted a right of first refusal in connection with the licensing of the right to develop, manufacture and commercialize pharmaceutical products containing RVX-208 (apabetalone) in the United States (the “US Licensing Rights”) until April 15, 2019. Hepalink USA paid $8 million (the “Fee”) to Resverlogix in consideration for the right of first refusal granted. If Resverlogix and Hepalink USA enter into a license agreement with respect to the US Licensing Rights, the Fee shall be credited against any payment obligations of Hepalink USA thereunder. Otherwise, the Fee is refundable, in whole or in part, upon termination of the Agreement. During the first 60 day period, the Agreement may only be terminated upon mutual agreement of the parties; thereafter, the Agreement may be terminated by either party.
Mr. Donald McCaffrey, President and CEO, stated, “We are very pleased that Hepalink USA is interested in a licensing partnership with Resverlogix, potentially licensing the United States, the single largest market opportunity available to a partner.”
The Agreement may be considered a related party transaction within the meaning of applicable securities laws as Hepalink USA’s parent company is an insider of the Company. The Agreement would be exempt from the formal valuation and minority approval requirements applicable to related party transactions on the basis that the value of the transaction is less than 25 percent of the Company’s market capitalization. All of the directors approved the Agreement, other than Mr. Shawn Lu, who declared his interest in the Agreement as an officer of Hepalink USA, and accordingly, abstained from approving the Agreement.
About Resverlogix
Resverlogix is developing apabetalone (RVX-208), a first-in-class, small molecule that is a selective BET (bromodomain and extra-terminal) inhibitor. BET bromodomain inhibition is an epigenetic mechanism that can regulate disease-causing genes. Apabetalone is the first and only BET inhibitor selective for the second bromodomain (BD2) within the BET protein called BRD4. This selective inhibition of apabetalone on BD2 produces a specific set of biological effects with potentially important benefits for patients with high-risk cardiovascular disease (CVD), diabetes mellitus (DM), chronic kidney disease, end-stage renal disease treated with hemodialysis, neurodegenerative disease, Fabry disease, peripheral artery disease and other orphan diseases, while maintaining a well described safety profile. Apabetalone is the only selective BET bromodomain inhibitor in human clinical trials. Apabetalone is currently being studied in a Phase 3 trial, BETonMACE, in high-risk CVD patients with type 2 DM and low high-density lipoprotein (HDL), and is expected to be initiated in a Phase 2a kidney dialysis trial designed to evaluate biomarker changes and safety parameters in up to 30 patients with end-stage renal disease treated with hemodialysis.
Resverlogix common shares trade on the Toronto Stock Exchange (TSX:RVX).
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For further information please contact:
Investor Relations
Email: ir@resverlogix.com
Phone: 403-254-9252
Or visit our website: www.resverlogix.com
This news release may contain certain forward-looking information as defined under applicable Canadian securities legislation, that are not based on historical fact, including without limitation statements containing the words “believes”, “anticipates”, “plans”, “intends”, “will”, “should”, “expects”, “continue”, “estimate”, “forecasts” and other similar expressions. In particular, this news release includes forward looking information relating to a right of first refusal agreement, potential future licensing transactions, and the potential role of apabetalone in the treatment of CVD, DM, chronic kidney disease, end-stage renal disease treated with hemodialysis, neurodegenerative disease, Fabry disease, peripheral artery disease and other orphan diseases. Our actual results, events or developments could be materially different from those expressed or implied by these forward-looking statements. We can give no assurance that any of the events or expectations will occur or be realized. By their nature, forward-looking statements are subject to numerous assumptions and risk factors including those discussed in our Annual Information Form and most recent MD&A which are incorporated herein by reference and are available through SEDAR at www.sedar.com. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement and are made as of the date hereof. The Company disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
