Ambrilia Biopharma Inc.
TSX : AMB

Ambrilia Biopharma Inc.

June 05, 2009 08:33 ET

Ambrilia Settles its Arbitration With Merck

Attention Business/Financial/Health Editors

MONTREAL, QUEBEC--(Marketwire - June 5, 2009) - Ambrilia (TSX:AMB) today announced that it has settled with Merck Sharp and Dohme Research Limited and Merck & Co. ("Merck") the arbitration pending before the International Court of Arbitration of the International Chamber of Commerce that concerned their Exclusive License Agreement of October 12, 2006 and a November 14, 2003 Confidentiality Agreement (the "Arbitration"). The terms of the settlement provide for the termination of the License Agreement and the Confidentiality Agreement that were a subject of the arbitration, resulting in the return to Ambrilia of its HIV/AIDS protease inhibitor (PI) program and licensed know how and technology. This includes Ambrilia's lead compound, PPL-100, and related technology and compounds. The settlement agreement also provides for the payment by Merck to Ambrilia of an amount of US$2,000,000 within 10 business days of the settlement and a royalty for a period of 10 years from first commercial sale of a certain family of products, and the release of all claims made in the arbitration.

"With this settlement, the return of PPL-100 to Ambrilia strengthens our virology portfolio. We are now in a favorable situation to explore different strategic opportunities for our virology pipeline" said Dr. Philippe Calais, President and CEO of Ambrilia.

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 therapeutic peptide for prostate cancer, 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 with a regional office in France. For more information, please visit the Company's web site: www.ambrilia.com

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 outcome of the arbitration proceeding with Merck, 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 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.

Contact Information