Cynapsus Therapeutics Inc.
TSX VENTURE : CTH

Cynapsus Therapeutics Inc.

November 29, 2010 16:19 ET

Cynapsus Announces Signing of Memorandum of Understanding

TORONTO, ONTARIO--(Marketwire - Nov. 29, 2010) - Cynapsus Therapeutics Inc. ("Cynapsus") (formerly Cannasat Therapeutics Inc.) (TSX VENTURE:CTH) today announced it has executed a binding Memorandum of Understanding with IntelGenx Corp. ("IntelGenx"), its former development partner, whereby IntelGenx will forgive $231,000 of debt owing and agrees to pay a royalty on future sales of the INT0010 (formerly Relivar), a buccal/sublingual formulation of THC (dronabinol) for the symptomatic management of Multiple Sclerosis induced neuropathic pain. As part of this agreement, Cynapsus has retained exclusive worldwide rights to its licensed technology as it relates to generic THC products for the treatment of nausea/vomiting and appetite stimulation. 

Both parties expect to sign a Definitive Agreement on or before December 31, 2010.

"We are pleased to have IntelGenx take over full responsibility for the development, funding and commercialization of the INT0010 project," stated Anthony Giovinazzo, President and Chief Executive Officer of Cynapsus. "Given our focus on our Parkinson's drug candidate, APL 130277, we believe this is the right step to move the project forward. IntelGenx has been our development partner since the beginning of the project, and has a proven track record of developing patented drug delivery technologies that improve the delivery of existing drugs on the market. IntelGenx is also currently in discussions with several companies that have expressed an interest in commercializing the product, which is encouraging."

About Cynapsus Therapeutics

Cynapsus is a specialty clinical development pharmaceutical company targeting diseases of the brain. Cynapsus has a lower risk Parkinson's drug candidate ("APL-130277"), which is a reformulation of an approved drug. APL-130277 is designed to address a much larger moderate to severe patient population, which represents close to 50% of Parkinson's patients. Cynapsus also has a proprietary formulation technology for cannabinoid drug candidates, which may be used to treat neuropathic pain associated with multiple sclerosis and cancer, as well as for nausea/vomiting and appetite stimulation.

Cynapsus' strategy is to grow its portfolio of drug candidates through in-licensing and acquisitions, and to advance projects to Phase 2 proof-of-concept clinical studies. Once the drug candidates are sufficiently derisked, Cynapsus intends to out-license the programs to the appropriate pharmaceutical marketing partners for a combination of upfront, milestone, and royalty payments.

More information about Cynapsus (TSX VENTURE:CTH) is available at www.cynapsus.ca.

About APL 130277

Cynapsus is developing APL 130277 as a convenient and fast acting reformulation of FDA-approved apomorphine (a proven dopamine agonist that addresses motor fluctuation for Parkinson's patients). APL 130277 is a reformulation of the currently marketed injection into an oral formulation that will follow an expedited clinical development path of 18-24 months based on the FDA's 505b(2) submission process. In addition to addressing the needs of severe Parkinson's patients who currently have access to only the inconvenient and painful subcutaneous apomorphine injection, APL 130277 has the potential to become adjunctive therapy for moderate Parkinson's patients as well. APL 130277 could be used 2 to 3 times daily to allow for a fast rescue of patients experiencing motor fluctuations in addition to therapy with various forms of levodopa.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Cynapsus to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks and uncertainties relating to Cynapsus' business disclosed under the heading "Risk Factors" in Cynapsus' current Annual Information Form and its other filings with the various Canadian securities regulators which are available online at www.sedar.com. Although Cynapsus has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cynapsus does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

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

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