Ambrilia Biopharma Inc.

Ambrilia Biopharma Inc.

July 17, 2007 08:00 ET

Ambrilia Completes Korean Licensing Partnership with Shin Poong for its Long-Acting Formulation of Octreotide

MONTREAL, QUEBEC--(Marketwire - July 17, 2007) - Ambrilia Biopharma Inc. (TSX:AMB), a biopharmaceutical company developing novel small molecules and peptides to treat infectious diseases and cancer, announced today the signing of a licensing and distribution agreement with Shin Poong Pharmaceutical Co. of Seoul, Korea, for its sustained-release formulation of Octreotide for the treatment of acromegaly. As previously announced, Ambrilia's Octreotide is currently in Phase III clinical trials.

The agreement comprises of upfront, development, and regulatory milestones payments. Ambrilia will manufacture the product at its cGMP (current Good Manufacturing Practices) facility in Montreal, Canada, and supply the finished product to Shin Poong Parmaceutical at a contractual price (inclusive of royalties) for sale in Korea.

Shin Poong is one of the ten largest pharmaceutical companies in Korea and employs over 1,500 people world-wide with sales in excess of Cdn $200 million. Marketed products include antibiotic Clamoxin and anti-cancer drug Didox.

"We are pleased to have Shin Poong as our partner for the marketing of our added-value long-acting Octreotide in this rapidly growing Asian market. With the company's experience and success in marketing in-licensed products in Korea, we believe the relationship with Shin Poong bodes well for the future commercial success of Octreotide in Korea," said Dr. Chandra Panchal, Executive Vice-President, Business Development, Licensing and Intellectual Property of Ambrilia.

"We are delighted at the opportunity to work with Ambrilia and foresee a substantial market potential for Octreotide in Korea, one that we believe we are fully equipped to embark upon," said Mr. Hyun Taek Chang, Chief Executive Officer of Shin Poong.

According to the recently published South Korea Pharmaceutical & Healthcare Report Q1 2007 (Business Monitor International, April 2007) by Research and Markets, the value of the total South Korean pharmaceutical market is estimated at US$15.2bn in 2006, and is expected to rise to US$21.2bn by 2011.


Ambrilia's product is a prolonged release formulation of Octreotide. The original product is commercialized as Sandostatin®LAR (octreotide acetate for injectable suspension, a registered trademark of Novartis Pharmaceuticals Corporation). Ambrilia has developed an advanced formulation which enables one injection every 6 weeks instead of an injection every 4 weeks with the Novartis product. Octreotide is used for the treatment of a rare disease called acromegaly caused by a tumor of the pituitary gland, and for certain rare digestive tumors.

Acromegaly is a serious chronic condition related to a permanent hypersecretion of growth hormone (GH) by the pituitary gland, generally of tumoral origin. This causes an excessive production of Insulin-like Growth Factor 1 (IGF-1), a hormone secreted from the liver and other tissues. Excessive production of IGF-1 and GH translates into uncontrolled growth of various organs, and debilitating symptoms. Control of the GH and IGF-1 levels by Sandostatin® LAR results in normalizing such excessive growth and symptoms. Medical treatment has an important role to play in the management of patients with acromegaly. It is a life long treatment, with few, mild side effects.

Ambrilia's forward-looking statements

This press release contains forward-looking statements that reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including, but not limited to, 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 Management's Discussion & Analysis of Financial Condition and Results of Operations which contain 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 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. 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.


Ambrilia Biopharma Inc. (TSX:AMB) is a biopharmaceutical company developing novel small molecules and peptides to treat infectious diseases and cancer. Ambrilia's product portfolio includes promising anti-HIV treatments (PPL-100 and an HIV Integrase Inhibitor Program), two new formulations of existing drugs developed with a patented technology (Octreotide and Goserelin), an anti-cancer therapeutic peptide (PCK3145), a tumor and tumor-vasculature targeting (TVT) technology platform, as well as other anti-virals and immunomodulators. Exclusive worldwide rights to PPL-100 and its related compounds have been granted to Merck & Co., Inc. in return for a $US 17 million upfront payment, potential milestones that could reach $US 212 million, and royalties. Ambrilia's head office, research and development and manufacturing facilities are located in Montreal with a regional office in France.

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