Mistral Pharma Inc.

Mistral Pharma Inc.

April 02, 2007 11:09 ET

Mistral Pharma Signs Agreement for Acquisition of CuraMedica

MONTREAL, QUEBEC--(CCNMatthews - April 2, 2007) - Mistral Pharma Inc. (TSX VENTURE:MIP) ("Mistral") announces today that it has entered into an agreement for the acquisition of 100% of the shares of CuraMedica (Canada) Inc., (CuraMedica) a privately-held Montreal company that own the Canadian rights for pharmaceutical products in different therapeutic areas. One of these products, Instillagel® is expected to be approved by Health Canada in 2007.

"This transaction is a leap forward in Mistral's plan to become an integrated pharmaceutical company" said Mr. Bertrand Bolduc, Mistral's President & CEO. "By combining an exciting pipeline of branded controlled-release products and a focused sales & marketing team for the Canadian market, we are positioning Mistral as a partner of choice for US, Asian and European pharmaceutical companies. Not only will Mistral be able to market our products in Canada, we will also be able to use our pipeline of products for quid pro quo licensing deals which will be mutually beneficial for Mistral and our partners" explained Mr. Bolduc.

CuraMedica will be integrated into Mistral Pharma and its President, Mrs. Dalal Manoli, will become Mistral's Vice-President Sales & Marketing. "We are very excited to have Mrs. Manoli, a seasoned life science executive, whom I have known and respected for many years, join Mistral's team" added Mr. Bolduc.

CuraMedica's first product, Instillagel®, is an innovative product licensed from Farco Pharma of Germany. It is a sterile gel combining lidocaine and chlorhexidine, a local anesthetic and a disinfectant for urology procedures. Instillagel® provides a safe and effective solution for patients to ease discomfort in urology procedures.

Details of the Transaction

Upon closing, Mistral will issue to CuraMedica shareholders 9,950,750 common shares, i.e. 5.65 % of the common shares outstanding giving effect to the transaction. These shares may be subject to a 4-month hold period from the date of their issuance.

The closing of the transaction is subject to regulatory approval, including that of the TSX Venture Exchange, to Mistral's board of Directors' approval, to a satisfactory due diligence and the execution of a share purchase agreement and to the satisfaction of certain other conditions by CuraMedica. Closing is expected to occur in April 2007.

About Mistral Pharma Inc.

Mistral Pharma is a pharmaceutical product development and drug delivery company and its first two branded products, MIST-B01 & B02, showed positive results at their respective first pilot clinical trials. Mistral is also working on other control-delivery branded products. Mistral positions itself as a development partner for specialty pharmaceutical companies. Additional information about Mistral Pharma can be obtained on Mistral Pharma's website at www.mistralpharma.com.

Forward-looking Statements

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of Mistral Pharma. These statements are based on assumptions and uncertainties as well as on Management's best possible evaluation of future events. Such factors may include, without excluding other considerations, fluctuations in quarterly results, evolution in customer demand for Mistral Pharma's products, the impact of price pressures exerted by competitors, results from clinical studies and regulatory approval process as well as general market trends or economic changes. As a result, readers are advised that actual results may differ from expected results.

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

Contact Information

  • Mistral Pharma Inc.
    Bertrand F. Bolduc, B.Pharm., MBA
    President & Chief Executive Officer
    514-421-1717 ext. 2224
    Mistral Pharma Inc.
    Alain Provencher, CA, CF
    Vice-president, Finance & Chief Financial Officer
    514-421-1717 ext. 2222