RE:Wasn't PLI formed from the old "Hemosol"? ProMetic Life Sciences Inc. (CC:PLI) And Hemosol (HMSL) Announce Strategic Alliance To Implement New Plasma Separation Technology
MONTREAL, Dec. 4 -- ProMetic Life Sciences Inc. (TSX: PLI) announces that its wholly owned UK subsidiary ProMetic BioSciences Ltd. and Hemosol Inc. (TSX: HML; Nasdaq: HMSL ) signed an important strategic agreement to implement the novel ProMetic/American Red Cross plasma protein purification process ("Cascade") for North America.
Key Highlights of the Strategic Agreement: - North American Rights in Cascade with performances thresholds licensed to Hemosol in consideration for C$18 million plus royalties of 5 to 8% on sales of products. - The commitment in principle of the American Red Cross to supply raw material to Hemosol for processing and the subsequent re-purchase from Hemosol of specific therapeutic products isolated using the Cascade. - The opportunity to significantly increase yields of next generation therapeutic plasma proteins including IgG, AAT, Factor VIII and Fibrinogen which are in great demand as current supply does not meet worldwide needs; The total worldwide market sales amounted US $5.6 billion in 2002, expected to attain US $6 billion in 2005. - Agreement structured to capitalize on ProMetic proven proprietary technology and Hemosol 's C$90 million blood protein processing plant to provide short-term revenue generation and joint business development activities.
The plasma-derived protein industry represents annual sales of over US$ 5.6 billion. According to experts, the future of this industry lies in its ability to build more efficient facilities, to access technology capable of improving yields and to develop new and novel therapeutics (Plasma proteomics). The ProMetic/ARC Cascade process is designed to meet these opportunities.
Through this agreement with Hemosol , ProMetic is now well advanced in its project to have the first facility of this type based in Canada. An agreement with the American Red Cross (ARC) to provide 500,000 litres of plasma for processing in this facility will provide the economics to make this project a reality in Canada. "After many attempts by various public and private organizations over the years, we are proud to have finally pooled all the elements needed to provide Canada with this unique plasma fractionation facility," noted Pierre Laurin, President and Chief Executive Officer of ProMetic. "This alliance will offer important benefits to all three organizations, as well as to all North Americans since this plant will provide life saving medicines at lower costs, in accordance with required safety measures".
The ProMetic/Hemosol alliance will also generate short-term revenues for both companies through manufacturing contracts for other plasma fractionation companies and providing development work to ProMetic's other licensees worldwide.
Plasma-Derived Proteins - A Huge Unmet Market
Plasma protein fractionation is by far the largest global therapeutic protein industry. Therapeutic products derived from plasma are used to treat more than one million patients each year, namely as example for immune deficiency conditions, haemophilia and burns, and amounted US $ 5.6 billion in sales in 2002, expected to grow 8% over the next 3 years. More than 25 million litres of plasma are processed worldwide annually, producing over 500 metric tons of human serum albumin (hSA ) and over 50 tons of IgG (immunoglobulins) per year.
Many developed countries have experienced shortages of plasma-derived products in the past three years, mainly due to an increase in clinical demand as well as safety measures taken to prevent the theoretical risk of transmitting infectious diseases such as Creutzeldt-Jacob Disease.
Key markets that do not yet have their own plasma processing facilities and rely on external sources of supply include Canada, Latin America, the Middle East, India, Africa and several East European and Far Eastern countries.
Yet the needs are so extensive that fractionation companies are unable to meet the demand. "Global demand is significantly greater than the current level of supply, which is limited by the availability of plasma and by worldwide fractionation capacity. With the American Red Cross' supply and this new fractionation facility, we are killing two birds with one stone," stated Chris Lamb, Vice-President and Chief Operating Officer, American Red Cross, Plasma Services.
ARC and ProMetic joined forces for a second time in January 2003 to combine their respective technologies to improve the current yields and purity of products from plasma compared to industry standards. The novel ProMetic/ARC process is actually a combination of individually proven steps, presented in a unique sequence that is referred to as "the cascade purification process". Its use allows for the recovery of the proteins directly from plasma, further improving the extraction yield.
"This is an important milestone for our alliance with the American Red Cross. The ProMetic/ARC alliance anticipates licensing other countries to allow them to build similar facilities. The ability to supply other licensees with GMP material manufactured in Hemosol 's facility will accelerate the construction and validation of these facilities," concluded Mr. Laurin.
Hemosol has recently built a 130,000-square-foot manufacturing facility to handle the commercial production of blood proteins. Located near the Pearson airport in Mississauga, Ontario, this $90 million facility is well suited to accommodate the new process.
"All our past investments in manufacturing infrastructure and expertise in handling blood derived-products will be leveraged through this agreement to provide a significant upside to our shareholders," stated Lee Hartwell, President and Chief Executive Officer of Hemosol .
"ProMetic and Hemosol 's business models are perfectly compatible", added Mr Laurin. "ProMetic's is to license worldwide to different parties that wish to acquire the ability to become self sufficient in the provision of next- generation plasma-derived therapeutics or to improve their manufacturing yield (output). The current agreement between ProMetic and Hemosol draws on each party's respective strengths provides a better prospect of short-term revenue generation and motivates joint business development activities."
Conference Call
Hemosol , ProMetic and the American Red Cross will host a conference call to discuss this strategic alliance at 10 a.m. today, December 4, 2003 (DIAL IN NUMBER:1-800-273-9672 or 416-695-5806, REFERENCE NUMBER: 1508631; TAPED REPLAY: 1-800-408-3053 OR 416-695-5800). Participating to the call will be Messrs Lee Hartwell, President & CEO Hemosol Inc., Pierre Laurin, President & CEO ProMetic BioSciences Ltd., and Chris Lamb, Chief Operating Officer, American Red Cross Plasma Services.