Isotechnika Inc.

January 29, 2007 12:42 ET

Isotechnika Cancels Equity Draw Down Facility

EDMONTON, ALBERTA--(CCNMatthews - Jan. 29, 2007) -


Isotechnika Inc. (TSX:ISA) today announced that it has agreed with Azimuth Opportunity, Ltd. to cancel the previous announced $40,000,000 Equity Draw Down Facility effective immediately.

Dr. Randall Yatscoff, Isotechnika's President & CEO stated, "Given our recently announced Bought Deal Financing, it was unlikely that we would draw down on the Equity Line in the near future. The management of Isotechnika very much appreciates its association with Azimuth and looks forward to working with them in future transactions. "

About Isotechnika

Edmonton-based Isotechnika Inc. is an international biopharmaceutical company focused on the discovery and development of novel immunosuppressive therapeutics that are safer than currently available treatments. Isotechnika's lead compound, ISA247 has successfully completed a Canadian Phase III trial for the treatment of moderate to severe psoriasis. ISA247 is currently being investigated in a combined Phase III European/Canadian psoriasis trial and a Phase IIb North American Phase trial for the prevention of organ rejection following kidney transplantation.

Additionally, Isotechnika's partner, Lux Biosciences has received permission from the FDA to investigate ISA247, referred to as LX211 by Lux, as a treatment for non-infectious uveitis and as a maintenance therapy in uveitis in three separate Phase II/Phase III trials.

Partnerships with Isotechnika Inc.

Isotechnika Inc. signed a collaboration agreement with Hoffman La Roche on April 9, 2002, which licensed the worldwide rights to develop and commercialize ISA247 for all transplant indications.

On September 30, 2005, Isotechnika Inc. entered into an exclusive worldwide licensing agreement with Atrium Medical Corporation for the use of ISA247 and TAFA93 specifically with drug eluting devices for the non-systemic treatment of vascular, cardiovascular, target vessel and tissue disorders.

Isotechnika Inc. and Cellgate Inc. signed an option agreement on April 25, 2006, granting Isotechnika the option to obtain an exclusive license to develop and commercialize conjugates consisting of Cellgate's patented transporter technology for the topical delivery of ISA247 in patients suffering from mild to moderate psoriasis.

On May 25, 2006, Isotechnika Inc. signed an agreement with Lux Biosciences, Inc. of Jersey City, New Jersey granting Lux Biosciences worldwide rights to develop and commercialize Isotechnika's lead drug, ISA247 for the treatment and prophylaxis of all ophthalmic diseases.

Forward-Looking Statements

This press release may contain forward-looking statements. Forward looking statements, including the Company's belief as to the potential of its products, the Company's expectations regarding the issuance of additional patents and the Company's ability to protect its intellectual property, involve known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from those in the forward looking statements. Such risks and uncertainties include, among others, the availability of funds and resources to pursue research and development projects, the ability to economically manufacture its products, the potential of its products, the success and timely completion of clinical studies and trials, the Company's ability to successfully commercialize its products, the ability of the Company to defend its patents from infringement by third parties, and the risk that the Company's patents may be subsequently shown to be invalid or infringe the patents of others. Investors should consult the Company's quarterly and annual filings with the Canadian commissions for additional information on risks and uncertainties relating to the forward-looking statements. Investors are cautioned against placing undue reliance on forward-looking statements.

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