- Signing triggers $0.8 million upfront payment
LAVAL, QUEBEC, CANADA – March 6, 2012 – ProMetic Life Sciences Inc. (TSX: PLI) (“ProMetic”) announced today that it has signed an agreement with an existing client to proceed to the next stage of an ongoing commercial development program. This phase of the commercial development program calls for activities that will provide ProMetic with an estimated $2.5 million of service revenues throughout 2012. An upfront payment of $0.8 million is also triggered on the signing of the agreement.
“This is one of the several commercial agreements expected to contribute to a strong year for ProMetic in terms of revenue”, mentioned Mr. Pierre Laurin, President and Chief Executive Officer of ProMetic. “Our client’s request to proceed with the next stage of its development program further confirms that our proven and enabling manufacturing platform has met and exceeded all performance expectations”, added Mr. Laurin.
These activities should result in the scaling up of the manufacturing process of the multinational biopharmaceutical product in 2012 and lead to a subsequent long-term agreement for the manufacture and supply by ProMetic of the relevant affinity resin in 2013 onward. Revenues arising from the recurring purchase of affinity resin for such kind of commercial applications once regulatory approval have been granted are typically in the range of $ 3 M to $ 6 M per year.
About ProMetic Life Sciences Inc.
ProMetic Life Sciences Inc. (“ProMetic”) (http://prometic.com/) is a biopharmaceutical company specialized in the research, development, manufacture and marketing of a variety of commercial applications derived from its proprietary MimeticTM Ligand technology. This technology is used in large-scale purification of biologics and the elimination of pathogens. ProMetic is also active in therapeutic drug development with the mission to bring to market effective, innovative, lower cost, less toxic products for the treatment of hematology and cancer. Its drug discovery platform is focused on replacing complex, expensive proteins with synthetic “drug-like” protein mimetics. Headquartered in Laval (Canada), ProMetic has R&D facilities in the UK, the U.S. and Canada, manufacturing facilities in the UK and business development activities in the U.S., Europe, Asia and in the Middle-East.
Forward Looking Statements
This press release contains forward-looking statements about ProMetic’s objectives, strategies and businesses that involve risks and uncertainties. These statements are “forward-looking” because they are based on our current expectations about the markets we operate in and on various estimates and assumptions. Actual events or results may differ materially from those anticipated in these forward-looking statements if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. Such risks and assumptions include, but are not limited to, ProMetic’s ability to develop, manufacture, and successfully commercialize value-added pharmaceutical products, the availability of funds and resources to pursue R&D projects, the successful and timely completion of clinical studies, the ability of ProMetic to take advantage of business opportunities in the pharmaceutical industry, uncertainties related to the regulatory process and general changes in economic conditions. You will find a more detailed assessment of the risks that could cause actual events or results to materially differ from our current expectations on page 27 of ProMetic’s Annual Information Form for the year ended December 31, 2010, under the heading “Risk Factors”. As a result, we cannot guarantee that any forward-looking statement will materialize. We assume no obligation to update any forward-looking statement even if new information becomes available, as a result of future events or for any other reason, unless required by applicable securities laws and regulations. All amounts are in Canadian dollars unless stated otherwise.