Microbix and ImaRx Agree to Terminate Letter of Intent

About this update from Microbix Biosystems Inc.

[{"type":"text","content":"\n\n\n\nTORONTO, June 11 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) and ImaRx\nTherapeutics, Inc. (Nasdaq: IMRX) have agreed to terminate the previously\nannounced letter of intent in which Microbix offered to acquire the urokinase\ninventory and related assets from ImaRx for $17 million.\n\n\nTwo recent events prompted this decision:\n\n- ImaRx was notified by the FDA, after the LOI was signed, that\n additional testing would be required for approval of the urokinase\n stability testing program and release of labeled vials of urokinase.\n\n- ImaRx subsequently informed Microbix that it intended to complete the\n additional urokinase stability testing and submit it to the FDA by\n August 2008 and that, as a result, ImaRx would not be in a position\n to begin sales of its labeled vials of urokinase with extended\n expiration dating until the Fall of 2008, assuming FDA approval. This\n was a materially different timeframe for product sales than\n contemplated in the LOI.\n\n\nMicrobix had intended to spin off its own urokinase assets into a new\nprivate company, Klarogen Biotherapeutics Inc., which would have purchased the\nurokinase assets of ImaRx.\n\n\nNow that the LOI has been terminated, Microbix will continue to work with\na number of parties and ImaRx to determine the most logical and fundable path\nforward with respect to the acquisition of the ImaRx urokinase assets.\n\n\nMicrobix specializes in the development of biological technologies and\ncommercializing them through global partners. The Company has intellectual\nproperty in large market biotherapeutic drugs, vaccine technologies and animal\nreproduction technologies. Established in 1988, Microbix is headquartered in\nToronto.\n\n\nThis press release contains forward-looking statements, which are subject\nto risks and uncertainties that could cause actual results to differ\nmaterially from those set forth in the forward-looking statements including,\nwithout limitation, the risks associated with: failure of the parties,\nincluding Klarogen and ImaRx, to enter into another letter of agreement;\nfailure of Klarogen to finance the acquisition from ImaRx; failure to develop\nand commercialize urokinase on a timely basis or at all; failure to complete\ndue diligence to the satisfaction of either or both parties; and general risks\nassociated with FDA approval and the comme...

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