Theratechnologies inc.
TSX : TH

Theratechnologies inc.

September 26, 2007 20:23 ET

Theratechnologies Announces a License Agreement for its Glucagon-Like Peptide-1 (GLP-1) Portfolio of Compounds

MONTREAL, QUEBEC--(Marketwire - Sept. 26, 2007) - Theratechnologies (TSX:TH) today announced the signing of a license agreement under which OctoPlus N.V. (Euronext:OCTO) has acquired exclusive worldwide rights to develop and commercialize Theratechnologies' Glucagon-like Peptide-1 (GLP-1) portfolio of analogues for the treatment of diabetes and other potential indications. OctoPlus' proprietary drug delivery technology in the area of controlled release will be combined with Theratechnologies' GLP-1 compounds to produce a product candidate that may reduce the required dosing frequency in diabetes therapy.

Theratechnologies has received an undisclosed upfront consideration upon signing of the agreement. Furthermore, pursuant to the terms of the agreement, OctoPlus will make milestone payments to Theratechnologies, that could amount to as much as 36M Euros (approximately CA$51M), based on development, clinical phases and commercialization. Royalties on the annual net sales of any products developed and commercialized under the agreement could also be paid to Theratechnologies. OctoPlus will be responsible for all future development costs for the GLP-1 portfolio of compounds.

Theratechnologies' long acting GLP-1 analogues were created using the company's Long Acting Peptide (LAP™) technology that allows the design of potent and stable variants of naturally occurring short-lived peptides. GLP-1 is a hormone produced by the intestine that has several clinically proven physiological characteristics that may allow it to be a potent treatment for Type 2 diabetes. For example, GLP-1 increases insulin secretion in a glucose dependent manner, delays gastric emptying and decreases food intake by increasing satiety. In the past, one of the obstacles in using GLP-1 as a treatment for diabetes was its short half-life of less than two minutes. Theratechnologies' long-acting GLP-1 portfolio of compounds partially overcomes this challenge using its LAP™ technology and OctoPlus' controlled release technology may enable a formulation with fewer injections than current therapies with a better tolerability profile.

Due mainly to a refocusing of its business in late 2005, Theratechnologies, at that time, had made the strategic decision to out-license the GLP-1 portfolio of compounds primarily because it did not fit the value creating criteria of addressing a specialty market. In 2005, Theratechnologies had announced good Phase I safety results testing one of its GLP 1 analogues, TH0318. Overall, the safety profile of the treated population was similar to placebo, and, at all doses, there were no cases of nausea, which is a common side effect of GLP-1 therapy.

"OctoPlus' proprietary drug delivery technology, specifically in controlled release, makes it an ideal partner to maximize the value of our GLP-1 portfolio," noted Mr. Yves Rosconi, President and Chief Executive Officer of Theratechnologies. "Since focusing our efforts on tesamorelin (TH9507) in HIV-associated lipodystrophy in 2005, it was believed that the best approach to increase shareholder value was to divest the assets not associated with tesamorelin and this deal signifies a step forward in accomplishing this goal," commented Mr. Rosconi.

About Theratechnologies

Theratechnologies (TSX:TH) is a Canadian biopharmaceutical company that discovers innovative drug candidates in order to develop them and bring them to market. The Company targets unmet medical needs in financially attractive specialty markets. Its most advanced program is tesamorelin, which has recently competed patient recruitment for its confirmatory Phase 3 clinical trial for a serious metabolic disorder known as HIV-associated lipodystrophy. The Company also has other projects at earlier stages of development.

About OctoPlus

OctoPlus is a product-oriented drug delivery company focused on the development of improved pharmaceutical products with less side effects, increased patient compliance and better efficacy. The company's pipeline consists of 5 products in preclinical and clinical development. OctoPlus is also an internationally established provider of pharmaceutical development services and cGMP manufacturing to biotech and pharma companies worldwide. For more information, please visit www.octoplus.nl.

Forward Looking Statements:

This press release contains statements, which contain forward-looking information, which express the current beliefs and expectations of Theratechnologies' management. Actual results could differ materially from the forward looking information contained in the statements herein depending on a number of factors, including OctoPlus' relative success in developing and commercializing the GLP-1 portfolio of compounds, and therefore there can be no guarantee that Theratechnologies will receive all of the payments and royalties outlined in this press release. Forward-looking information is accurate only as of the date on which it is made and Theratechnologies undertakes no obligation to update this forward-looking information, even if new information becomes available in the future.

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