Covalon Technologies Ltd.
TSX VENTURE : COV

Covalon Technologies Ltd.

October 24, 2006 07:00 ET

Covalon Announces Completed Acquisition of Perfusion Therapeutics' Gene Therapy Technology

MISSISSAUGA, ONTARIO--(CCNMatthews - Oct. 24, 2006) - Covalon Technologies Ltd. ("Covalon")(TSX VENTURE:COV) today announced that it has completed acquisition of Perfusion Therapeutics' gene therapy technology.

Covalon Technologies Ltd. has completed acquisition of a cell engineering platform for improving blood vessel development ("angiogenesis") from Perfusion Therapeutics Inc. of Montreal. Covalon acquired the technology in exchange for 1,100,000 of its common shares to be released upon the completion of various milestones. The technology uses the endothelial PAS domain protein 1 (EPAS1). EPAS1 is the subject of several US and European patent applications that Covalon has assumed through the acquisition. Covalon plans to initiate its gene therapy program with the development and potential commercialization of EPAS1 for inducing angiogenesis. EPAS1 is a naturally occurring hypoxia-inducible transcription factor that is predominantly expressed in endothelial cells such as those lining the walls of blood vessels. Early preclinical studies have demonstrated that the EPAS1 gene serves as a "master control" that can activate expression of several other genes required for angiogenesis. The single biggest obstacle to improved ischemic tissue healing is the lack angiogenesis which limits site-specific blood flow. Angiogenesis is critical for improving cardiac output in patients with cardiac ischemia (i.e. congestive heart failure); improved angiogenesis is also required in ischemic tissue healing and tissue regeneration. The technology fits precisely with the Company's vision in wound management, improved angiogenesis and tissue regeneration.

The acquisition builds on Covalon's mission in treating chronic wounds and its record of applying the company's broad expertise in polymer chemistry and biomedical engineering to address critical and current health issues.

Covalon Technologies Ltd. is a developer of advanced medical products which has patented therapeutic biomaterials for wound care and surgical applications and coatings for medical devices. Polymer chemistry and surface coating technology have been combined to create a range of time-release drug delivery platforms that are applied to many medical devices. A variety of applications for this technology have been identified and specific products have been developed. These products feature solutions to many of the problems caused by the material properties of the medical devices currently offered by most manufacturers and suppliers.

This news release contains forward-looking statements which reflect the Company's current expectations regarding future events. The forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan, "estimate", "expect", "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. These forward-looking statements involve risk and uncertainties, including the difficulty in predicting product approvals, acceptance of and demands for new products, the impact of the products and pricing strategies of competitors, delays in developing and launching new products, the regulatory environment, fluctuations in operating results and other risks, any of which could cause results, performance, or achievements to differ materially from the results discussed or implied in the forward-looking statements. Many risks are inherent in the industry; others are more specific to the Company. Investors should consult the Company's ongoing quarterly filings for additional information on risks and uncertainties relating to these forward-looking statements. Investors should not place undue reliance on any forward-looking statements. Management assumes no obligation to update or alter any forward-looking statements whether as a result of new information, further events or otherwise.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this release.

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

Contact Information

  • Covalon Technologies Ltd.
    William Jackson
    CFO & COO
    (905) 568-8400
    (905) 568-5200 (FAX)
    Website: www.covalon.com