Covalon Technologies Ltd.

Covalon Technologies Ltd.

October 30, 2006 12:59 ET

Covalon Licences EPAS1 Technology from The University of Texas Southwestern Medical Center at Dallas

MISSISSAUGA, ONTARIO--(CCNMatthews - Oct. 30, 2006) - Covalon Technologies Ltd. (the "Corporation" or "Covalon") (TSX VENTURE:COV) is pleased to announce that it has received a non-exclusive license from the University of Texas Southwestern Medical Center at Dallas for technology covered by US Patent 5,695,963 entitled "Endothelial PAS Domain Protein" (EPAS1). The invention provides methods and compositions relating to EPAS1, related nucleic acids and protein domains having EPAS1-specific activity. The combination of technologies from the University of Texas Southwestern Medical Center at Dallas and that wholly acquired from Perfusion Therapeutics (Montreal) allows Covalon to engineer several cell types, including mesenchymal stem cells, dermal fibroblasts and bone marrow mononuclear cells for increased expression of EPAS1, a hypoxia inducible factor. EPAS1 is a "master" gene that is an upstream regulator of the expression of vascular endothelial growth factor and several other important angiogenic proteins crucial to new blood vessel growth required to deliver blood, oxygen and nutrients to regenerative tissues. According to Covalon CEO, Frank DiCosmo the intent is to optimize treatment of chronic ischemic conditions using cell transplantation to create a neo-vascularized environment required for cell survival at a site damaged by chronic impaired blood flow. Covalon intends to initiate its cell engineering program to generate cells that express useful genes at a site of cell therapy useful for treating ischemic conditions, such as chronic wounds, congestive heart failure, peripheral vascular disease and other conditions. The cell therapy technology aims to stimulate the growth of new blood vessels through a process of therapeutic angiogenesis.

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 not reviewed and does not accept responsibility for the adequacy or accuracy of this release. 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.

Contact Information

  • Covalon Technologies Ltd.
    William Jackson
    CFO & COO
    (905) 568-8400
    (905) 568-5200 (FAX)