NEWSMistral Pharma Signs Agreement for Acquisition of CuraMedica
MONTREAL, QUEBEC, Apr 2, 2007 (CCNMatthews via COMTEX) -- (CCN Mathews)
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(R) 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(R), 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(R) 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.