Bioxel Pharma Inc.
TSX VENTURE : BIP

Bioxel Pharma Inc.

May 16, 2006 14:30 ET

Bioxel Begins Commercial Delivery of Paclitaxel to European Generic Customer

SAINTE-FOY, QUEBEC--(CCNMatthews - May 16, 2006) - Bioxel Pharma Inc. (TSX VENTURE:BIP), a leading manufacturer of taxane active pharmaceutical ingredients (APIs) and developer of targeted oncology drugs, announces that the Corporation has begun delivery of paclitaxel to a leading European generic products company under terms of the manufacturing and supply agreement executed between the parties on February 23, 2006. The sale of paclitaxel to this new business partner is expected to yield revenues of approximately $800,000 in 2006.

"These paclitaxel deliveries confirm Bioxel's breakthrough in Europe," said Pascal Delmas, President and Chief Executive Officer of Bioxel Pharma. He added: "They represent a key milestone in the implementation of our marketing strategy which is aimed at normalizing sales growth by expanding our market presence in Europe and diversifying our customer base with generic manufacturers." Bioxel's customer currently markets a generic paclitaxel drug product in several EU countries, and soon expects to obtain marketing authorization throughout Europe. Pursuant to the confidentiality agreement signed by the parties, the manufacturer's name and terms of the supply agreement have not been disclosed.

Bioxel also announces that it has entered into an agreement with Export and Development Canada, pursuant to the shipment insurance coverage program to support and secure sales growth in export markets. This agreement provides Bioxel with up to $1 million in insurance coverage on export deliveries of taxane products.

Bioxel manufactures and sells cGMP paclitaxel to specialty pharmaceutical companies and generic formulation manufacturers. The Corporation's dedicated cGMP paclitaxel facility has a 120 kilogram annual manufacturing capacity. It is located at an FDA-inspected pharmaceutical production site. Bioxel's paclitaxel is registered with regulatory authorities in the United States, Europe and Canada, allowing its use worldwide. Bioxel also has a portfolio of patents under development for production of semi-synthetic taxanes. This includes patents for an original, non-infringing synthetic route to paclitaxel and docetaxel from 9-DHB, a natural taxane present in high levels in the Canada yew.

ABOUT BIOXEL PHARMA

Bioxel Pharma Inc. is a biopharmaceutical company, focused on developing, manufacturing and marketing taxane pharmaceutical ingredients. Taxanes are used in drug products for the treatment of cancer and other diseases, including psoriasis, rheumatoid arthritis, Alzheimer's disease and cardiovascular disease. The Corporation sells cGMP paclitaxel and develops a portfolio of other generic taxane APIs and taxane-based proprietary products for improved cancer therapy.

This announcement includes forward-looking statements that involve a number of risks and uncertainties, the outcome of which could materially and/or adversely affect future results. These include risks and uncertainties that could affect Bioxel's products under development such as regulatory factors, technological developments and competitive factors. Achievement of the objectives set forth in this release is subject to these risks and uncertainties. The Corporation's results, or the measures it adopts, could differ materially from those indicated or underlying these statements, or could have an impact on the realization of financial projections.

The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.

Contact Information

  • Bioxel Pharma Inc.
    Pascal Delmas, Pharm.D, MBA
    President and Chief Executive Officer
    (418) 654-9666
    www.bioxelpharma.com