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Abstract
ViRexx Medical Corp. (TSX:VIR) (AMEX:REX), a company focused on immunotherapy treatments for certain cancers, chronic hepatitis B and C and embolotherapy treatments for tumors, today announced that its wholly owned Irish subsidiary, ViRexx International Corp., has entered into a Licensing and Supply Agreement and a Securities Purchase Agreement with Defiante Farmaceutica, Lda., as well as a Manufacturing and Supply Agreement with Tecnogen S.C.p.A subsidiaries of Sigma-Tau of Rome, Italy, for the manufacturing, licensing and distribution of OvaRex(R) MAb to its remaining unlicensed European territories, which include the U.K., Ireland, France, Sweden, Finland and other countries. Pursuant to the agreements, Defiante's and ViRexx's existing European licensing partners will market and distribute the product throughout most of Europe and the Middle East. The Manufacturing and Supply Agreement is expected to be ratified by Tecnogen's Board of Directors when they next meet in January 2007. After such ratification, Tecnogen will manufacture and supply OvaRex(R) MAb for all of ViRexx's European licensing partners.
The agreement results in a net effective royalty of approximately 25% to ViRexx Ireland on net sales of OvaRex(R) MAb in the European and Middle Eastern countries. Under the terms of the agreements, Defiante will purchase up to approximately Cdn$6.5 million in newly issued shares of ViRexx. Defiante will immediately purchase 1,818,182 units of ViRexx at a price of Cdn$1.10 per unit, for proceeds of Cdn$2.0 million. Each unit consists of one common share and one non-transferable common share purchase warrant. Each warrant entitles Defiante to purchase one common share of ViRexx at a price of Cdn$1.25 for a period of 24 months.
"The territories covered by these agreements represent approximately 40% of the global ovarian cancer market. Sigma-Tau's experience and network in Europe is a significant asset to ViRexx and we believe this comprehensive agreement is an important step in the path toward the European commercialization of OvaRex(R) MAb," said Dr. Lorne Tyrrell, CEO of ViRexx. "Sigma-Tau is a proven successful marketer of specialty pharmaceutical products in Europe and the U.S., as well as a highly respected manufacturer of pharmaceutical and biological products. In addition to accessing a strong commercialization partner in Sigma-Tau, Tecnogen's manufacturing capabilities eliminate the need for us to make a significant capital expenditure on a stand alone manufacturing facility."