VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 24, 2014) - Pacgen Life Science Corporation ("Pacgen" or the "Company") (TSX VENTURE:PBS) announced that it has entered an agreement (the "Agreement") with General Biological Corporation ("GBC") pursuant to which the Company will sublicense to GBC the right to develop and commercialize PAC-113, a 12 amino-acid antimicrobial peptide derived from a naturally occurring histatin protein found in human saliva.
Under the terms of the Agreement, Pacgen will sublicense to GBC its worldwide exclusive right to develop and commercialize prescription and non-prescription pharmaceutical products containing PAC-113 or one or more related peptides for the treatment of any oral condition (excluding transitional skin-mucous membrane areas), as well as vaginal, dermatological and ophthalmic conditions. In exchange, GBC will pay Pacgen both an upfront payment and minimum annual royalty payments. GBC will also pay Pacgen milestone payments and royalty payments linked to marketing approvals and product sales, respectively. Completion of the transaction contemplated by the Agreement is subject to approval by the TSX Venture Exchange and approval by the shareholders of the Company.
GBC currently owns 20.38% of the Company's issued and outstanding common shares. Mr. Tsong Chin Lin, the Chairman and Chief Executive Officer of GBC, owns an additional 2.36% of the issued and outstanding common shares and Dr. Ming Sun Liu, the Executive Vice-President of GBC, owns an additional 0.42% of the issued and outstanding common shares. Mr. Lin and Dr. Liu had previously resigned as directors and officers of the Company.
The Company will be holding an annual and special meeting of shareholders in February 2014 for its shareholders to consider the Agreement, among other annual shareholder meeting matters. Mr. Chung-Yu Wang, Mr. John Hsuan, Mr. Fred Huang, Dr. Telvin Ju and Dr. Jeng-Horng Her will stand for re-election to the board of directors of the Company at the meeting.
Pacgen is a life science technology company focused on the commercialization of biomedical products and services, including its previous development of novel therapeutic drug candidates. For additional information, please visit www.pacgenlife.com.
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Forward looking Statements
Certain statements included in this press release may be considered forward-looking. Statements relating to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments constitute forward-looking statements. All forward-looking statements are based on Pacgen's current beliefs and expectations as well as assumptions relating to the successful completion of its clinical trials and pre-clinical studies, the time and process required to obtain regulatory approval for commercialization of its product, the ability of Pacgen to raise additional capital in future on favourable terms, the impact of competitive products and pricing in the market, new product development, and the successful and timely completion of corporate collaborations or licensing arrangements for its research programs. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, level of activity, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such factors include, among others, our stage of development, lack of product revenues, additional capital requirements, risk associated with completion of clinical trials and obtaining regulatory approval, dependence on collaborative partners, and our ability to protect our intellectual property.
Wherever possible, words such as "anticipate", "believe", "expect", "may", "could", "will", "potential", "intend", "estimate", "should", "plan", "predict", "project" or the negative or other variations of such expressions reflect Pacgen's current beliefs and assumptions and are based on the information currently available to Pacgen. Certain risks and uncertainties, including those risk factors identified by Pacgen in its annual management's discussion and analysis dated August 5, 2013, may cause our actual results, level of activity, performance or achievements to differ materially from those implied by forward looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made only as of the date of this press release. Pacgen disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. For all forward-looking statements, Pacgen claims the safe harbour for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.