Mistral Pharma Inc.

Mistral Pharma Inc.

July 22, 2005 16:35 ET

Mistral Pharma Starts Pilot Clinical Trial for First Generic Product, ratiopharm Ends Product Development Agreements

MONTREAL, QUEBEC--(CCNMatthews - July 22, 2005) - Mistral Pharma Inc. (TSX Venture:MIP) announced today that its first generic product entered pilot clinical trials this week. If these trials are successful, the product will enter the Pivotal Clinical trials, the last important step before submitting the product for FDA approval. Mistral should get the results of this first important study during the fall 2005.

Mistral Pharma Inc. also announced today that it has received from ratiopharm a notice indicating that they are ending the two development agreements for MIST-G01 and MIST-G03 respectively and the related manufacturing agreement. This termination was made following a review of ratiopharm's development program and is not related to Mistral's technologies or product development status. Mistral will pursue the development work of its generic and branded products and is confident to find other commercial partners for its products.

"Although our relationship with ratiopharm was excellent, their decision to end the development of the products was unforeseen especially considering that we are beginning the clinical trial on MIST-G01" said Bertrand Bolduc, Mistral's President & CEO. "We find comfort knowing that ratiopharm's decision has nothing to do with our technology and therefore, Mistral will definitely pursue the development of its products and MIST-G01 will enter clinical trial as planned. As a result, Mistral will immediately seek new development partners." he added.

In March 2004 and in November 2004, Mistral Pharma had signed two product development, collaboration and licensing agreements with ratiopharm inc. for undisclosed generic controlled delivery products and a manufacturing agreement with ratiopharm and Confab laboratories. Pursuant to these agreements, ratiopharm was to finance the development work for two specific products for the U.S. and Canadian markets using Mistral Pharma's proprietary technology and would have paid a series of milestone payments upon completion of successful developmental stages, in addition to royalties. Mistral will be pursuing its collaboration with Confab for commercial manufacturing of the products.

About Mistral Pharma inc.

Mistral Pharma is an emerging oral drug delivery company which develops generic and branded controlled-delivery products using its PROCISE™, SAVIT™ and CHRONOP™ geometry surface area technologies. These technologies offer many competitive advantages including flexible and fast development, competitive cost of goods and the use of "generally recognized as safe" excipients. 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, and 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 and Chief Executive Officer
    (514) 920-0909 ext 24
    Mistral Pharma Inc.
    Alain Provencher, CA
    Vice President and Chief Financial Officer
    (514) 920-0909 ext 22