Ambrilia Biopharma Inc.

Ambrilia Biopharma Inc.

February 16, 2010 09:20 ET

SurModics Provides a Notice of Termination of a Product Licence Agreement

MONTREAL, QUEBEC--(Marketwire - Feb. 16, 2010) -


Ambrilia Biopharma Inc. (TSX:AMB) announced today that SurModics Pharmaceuticals, Inc., as a successor to Southern Research Institute (formerly Brookwood Pharmaceuticals, Inc. and now a wholly-owned subsidiary of SurModics, Inc.) provided Ambrilia with a Notice of Termination of a Product License Agreement dated November 20, 2001 for the development, manufacture and sale of a sustained release formulation of Octreotide. Ambrilia disagrees with SurModics' claim that it is in breach of the Product License Agreement and considers that it has diligently proceeded with the development of Octreotide. Ambrilia will continue discussions with SurModics with a view to settling the disagreement and will consider all its other business and legal options. 

Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the outcome of Ambrilia proceedings under the Companies' Creditors Arrangement Act (Canada) ("CCAA").

About Ambrilia Biopharma Inc.

Ambrilia Biopharma Inc. (TSX:AMB) is a biotechnology company focused on the discovery and development of novel treatments for viral diseases and cancer. The Company's strategy aims to capitalize on its broad portfolio and original expertise in virology. Ambrilia's product portfolio is comprised of oncology and antiviral assets, including two new formulations of existing peptides for cancer treatment, a targeted delivery technology for cancer, an HIV protease inhibitor program as well as HIV integrase and entry inhibitors, Hepatitis C virus inhibitors and anti-Influenza A compounds. Ambrilia's head office, research and development and manufacturing facilities are located in Montreal. For more information, please visit the Company's web site:

The Company is currently subject to court protection under the CCAA.

Ambrilia's forward looking statements

This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. There is a risk that expectations and forward looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on these forward-looking statements as they involve risks and uncertainties, which could make actual results differ materially from those projected herein and depend on a number of factors including, but not limited to, the timing and continuance of the CCAA protection, the uncertainty involved in the court proceedings and the implementation of any plan of arrangement under the CCAA, changing market conditions, successful and timely completion of clinical studies, uncertainties related to the regulatory approval process, establishment of corporate alliances and other risks detailed from time to time in the Company's filings. We refer you to the Risk Factors section of the Company's annual information form which contains a more exhaustive analysis of the risks and uncertainties that are generally connected to the business of the Company. Such statements are also based on various assumptions, including the successful emergence from the insolvency proceedings, the successful and timely completion of clinical studies on Ambrilia's products demonstrating efficacy and safety for human use, their successful commercialization within the forecasted timelines and the attainment of the forecasted milestone payments and other revenues. Failure to complete a strategic or financial transaction as a result of the review of strategic alternatives could have a material adverse effect on Ambrilia. While Ambrilia anticipates that subsequent events and developments may cause Ambrilia's views to change, Ambrilia specifically disclaims any obligation to update these forward looking statements, unless obligated to do so by applicable securities laws.

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