Advitech Inc.
TSX VENTURE : AVI

Advitech Inc.

September 14, 2005 10:30 ET

Advitech Provides Update on its Recent Developments and Upcoming Milestones: Company Will Present at Investor Conference, BioContact Quebec 2005

QUEBEC CITY, QUEBEC--(CCNMatthews - Sept. 14, 2005) - Advitech Inc. (TSX VENTURE:AVI) is pleased to provide the following corporate update on its recent developments and upcoming milestones. Investors and analysts, please note that a new investor profile brochure is now available at www.advitech.com/pdf/advitech_profile_en.pdf.

RECENT DEVELOPMENTS

Positive results of the XP-828L clinical trial on XP-828L for mild-to-moderate psoriasis

In July 2005, Advitech completed a double-blind, placebo-controlled clinical trial of XP-828L as an oral product for treating mild-to-moderate psoriasis. Results from the 112-day study confirmed the efficacy of XP-828L compared with a placebo and also the exceptional safety profile of the product.

Navigant Consulting Study on XP-828L

In July 2005, the Company retained the services of Navigant Consulting Inc. to assess the U.S. market potential of XP-828L. Navigant, which recently published a comprehensive study of the U.S. psoriasis market, is a U.S.-based consulting firm offering specialized services in the biotech and health care sectors.

Navigant conducted an in-depth survey of U.S. dermatologists to determine their level of interest in XP-828L as an oral treatment for patients suffering from mild-to-moderate psoriasis. The results of the Navigant study are positive and confirm the positioning and potential of XP-828L. Dermatologists surveyed indicated a high level of interest for XP-828L because of its efficacy, safety and ease-of-use.

Experienced executive for the XP-828L Marketing Alliance Program

The Company also announced on July 13, 2005, that Pierre Mailloux, an executive with more than twenty years of experience in the pharmaceutical industry, will assist in carrying out the marketing alliance program. Mr. Mailloux will provide the Company with his extensive experience in U.S. and international business development activities. His role will be to help the Company in identifying potential marketing partners and negotiating distribution agreements.

UPCOMING MILESTONES

Commercial Partnerships for the Psoriasis Market

The Company has already signed confidentiality agreements and met with companies from the United States, Europe and Asia regarding potential agreements for these markets. The Company received positive feedback from these discussions which confirm the strong demand for an orally administered, safe product for people suffering from mild-to-moderate psoriasis. XP-828L appears to be well positioned to meet this need.

The objective of the Company is to sign an agreement in principle with its first marketing partner before the end of 2005.

Ongoing XP-828L In Vivo Study for Inflammatory Bowel Diseases (IBD)

The on-going preclinical study on inflammatory bowel diseases is progressing well. The Company expects to release the results of this study during the fourth quarter of 2005. This study is being done in collaboration with the Centre de Recherche du Centre Hospitalier de l'Universite Laval located in Quebec City (CRCHUL). If the results of this study are positive, Advitech intends to begin the clinical development phase in 2006 with a partner already involved in gastroenterology.

Inflammatory bowel diseases represent a substantial market. A recent study done by Navigant Consulting estimates that the market for IBD treatments, which include Crohn's disease and ulcerative colitis, should reach US $1.8 billion by 2009.

Financing

As indicated in the 2nd quarter report to shareholders, the funding of the Company's activities constitutes an ongoing priority for Management. The Company is currently reviewing interesting options to ensure continuous funding of its activities, with the objective of completing a financing operation within the next few months. The Company has enough financial resources to fund its activities in 2005 and well into 2006.

Presentation at BioContact 2005

Michel Lamontagne, Vice-President and chief financial officer of Advitech Inc. will make a presentation at the upcoming BioContact 2005 investor conference which will be held on October 5-7, 2005 in Quebec City. Mr. Lamontagne will update the investment community on the recent developments of the Company as well as on its current business development activities regarding its oral product for treating psoriasis. The Advitech CFO will also comment on the future development of the XP-828L platform, the Company's proprietary technology for immune-mediated chronic inflammatory disorders.

Mr. Lamontagne's presentation is scheduled for October 6, 2005, at 4:30 p.m. ET at Chateau Frontenac, room Petit Frontenac in Quebec City. BioContact is a partnership symposium at which over 150 companies make presentations to more than 1200 participants. The presentation will be posted on Advitech's website at www.advitech.com after the event.

About Advitech

Advitech is a Canadian biotechnology company specializing in the development of treatments for chronic immune-mediated inflammatory diseases (I.M.I.D.). Its main platform, XP-828L, is a patented growth factor composition derived from dairy proteins with immuno-modulating properties. Advitech's common shares are listed on the TSX Venture Exchange under the symbol AVI. The number of common shares outstanding is 54,799,818.

This press release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements involve risks and uncertainties. Actual results could differ materially from those projected herein. The reader is cautioned not to rely on these forward-looking statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Advitech Inc.
    Michel Lamontagne, MBA
    Vice-President and Chief Financial Officer
    (418) 686-7498, ext. 237
    m.lamontagne@advitech.com
    www.advitech.com
    or
    For Media and Investors:
    Echoes Financial Network Inc.
    Dominic Sicotte, (514) 842-9551, ext. 236
    Martin Lavoie, (514) 842-9551, ext. 231
    www.roadshows.tv