Isotechnika Pharma Inc IPHAF

Concern of investors

[blog]

The last bit of this post is the real concern of investors. OUR COLLABORATION WITH ROCHE On April 19, 2004, Isotechnika and Roche amended the original Collaboration Agreement which was signed on April 9, 2002, whereby Isotechnika reacquired the world-wide rights for all non-transplant indications of ISA247, including psoriasis. Isotechnika can develop any of the non-transplant indications of ISA247 internally and is also free to market and license any of the non-transplant indications of ISA247 with any third party. Under the amended terms of the Collaboration Agreement, Roche has an option to develop and commercialize ISA247 for transplant indications up to the completion of the six month Phase 2b kidney transplant trial. Upon receipt of the final Phase 2b kidney transplant trial report, expected in May 2008, Roche will have 90 days to exercise its option. To exercise this option, Roche will pay an option exercise fee of US$75,000,000, make future milestone payments, and be responsible for 70% of future shared development costs of ISA247 for transplant indications. Upon commercialization there is no change to the royalty structure from the original agreement for transplant indications. There is no assurance that Roche will exercise their option upon receipt of the final Phase 2b kidney transplant trial report, even if the Company deems the trial to be successful. Last updated March 20, 2008