Inflazyme Pharmaceuticals Ltd.
TSX : IZP

Inflazyme Pharmaceuticals Ltd.

October 17, 2007 19:00 ET

Inflazyme Pharmaceuticals Advises on the Proposed Merger of Biolipox, the Proposed Purchaser of Inflazyme's Assets, and Orexo

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 17, 2007) - Inflazyme Pharmaceuticals Ltd., (TSX:IZP) today announced that it has been provided with a press release concerning the proposed merger of Biolipox AB ("Biolipox") and Orexo AB, (OMX Nordic List, Mid Cap: ORX) ("Orexo").

Inflazyme and Biolipox signed an Asset Sale Agreement on September 24, 2007, whereby Inflazyme agreed to sell the majority of its research and development assets to Biolipox in return for $4 million in cash and up to $7 million in potential milestones and royalties. Inflazyme has called a special meeting of its shareholders to consider, and if thought advisable, to approve the asset sale to Biolipox.

On October 15, 2007, Orexo, a public Swedish pharmaceutical company, announced that they propose to acquire Biolipox to create a specialty pharmaceutical company with a broad product pipeline and established sales channels. Orexo further advised that, the current CEO of Biolipox, Dr. Torbjorn Bjerke, will serve as the President and CEO of the merged entity.

Inflazyme has contacted Biolipox and Dr. Torbjorn Bjerke, the CEO of Biolipox and CEO-elect of the merged Orexo, commented that, "The recently announced proposed merger of Biolipox and Orexo has no impact on our transaction with Inflazyme." He further added, "We remain very enthusiastic about the Inflazyme technology and the opportunity to pursue these assets. Indeed, we believe that the combination of Biolipox and Orexo provides even greater resources and opportunities to develop the Inflazyme technology."

The press release describing the proposed merger of Biolipox with Orexo can be viewed on the corporate websites of both companies - for Biolipox www.biolipox.com/eng, and for Orexo at www.orexo.com. The proposed merger between the two companies is subject to approval by the shareholders of Orexo. A meeting of the Orexo shareholders is scheduled for November 1, 2007.

About Inflazyme

Inflazyme Pharmaceuticals is a biopharmaceutical company in respiratory and inflammatory diseases. Further information on the Company may be obtained from its website at www.inflazyme.com.

This news release contains certain "forward-looking statements" and "forward-looking information" which may include but is not limited to statements in respect of our future financial position or operations. Words like "believe", "intend", "may", "expect", "anticipate", "plan", "should" and other similar expressions are forward-looking statements that involve a number of risks and uncertainties. By their nature, forward-looking statements involve numerous factors, assumptions and estimates, some but not all of the factors that could cause actual results to differ materially from those projected in our forward-looking statements include among others: risks associated with the completion of clinical trials and obtaining regulatory approval to market our products, market acceptance of our technologies and products; our ability to obtain financing; our financial and technical resources relative to those of our competitors; our ability to enforce our intellectual property rights and protect our proprietary technologies; the ability to obtain and develop partnership opportunities; and other risk factors identified from time to time in the Company's regulatory filings. For a further description of the principal risks affecting the Company, see our regulatory filings. 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.

Contact Information

  • Inflazyme Pharmaceuticals Ltd.
    Julie Rezler
    Sr. Director, Corporate Development
    1-800-315-3660 or (604) 279-8511
    (604) 279-8711 (FAX)
    Email: ir@inflazyme.com
    Website: www.inflazyme.com