Microbix to spin off Urokinase into newly formed Klarogen Biotherapeutics; Klarogen to acquire all remaining Urokinase inventory, sales and marketing infrastructure and NDA from ImaRx upon completion of financing

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[{"type":"text","content":"\n\n\n\nTORONTO, May 7 /CNW/ - Microbix Biosystems Inc. (TSX:MBX) announced today\nthat it intends to spin off its Urokinase assets into a new private company,\nKlarogen Biotherapeutics Inc., which would become the sole commercial-scale\nmanufacturer and supplier of the clot-busting drug after a proposed\nacquisition.\n\n\nMicrobix intends to transfer to Klarogen Biotherapeutics Inc., its\nUrokinase manufacturing facilities and equipment, worldwide commercial rights\nto all Urokinase therapeutic indications, and the associated staff and\nmanagement.\n\n\nUnder the terms of a newly arranged letter of intent, Klarogen would\npurchase the Urokinase assets of ImaRx Therapeutics, Inc. of Tuscon, Arizona,\n(Nasdaq: IMRX) for $17 million. These assets would include ImaRx' remaining\nUrokinase inventory, the NDA (formerly known as Abbokinase(R), now known as\nKinlytic (TM)) and the sales and marketing infrastructure. The Boards of\nDirectors of both companies have approved a letter of intent to this effect.\n\n\nThe benefits of acquiring the inventory, sales and marketing\ninfrastructure and NDA from ImaRx include:\n\n\n- Klarogen would have full control of parceling out the existing\n inventory - ensuring a smooth transition to when its manufacturing\n plant becomes operational.\n\n- Klarogen would be able to market directly to the pulmonary embolism\n customer base using its own sales and marketing infrastructure, which\n is far more profitable than through a partner.\n\n- Working with an already FDA-approved product would accelerate the\n timeline to commercial scale production.\n\n\nA tier-one health care fund in New York is providing the $17 million in\nfinancing for the ImaRx inventory, sales and marketing infrastructure and NDA\nacquisition. This same health care fund will be the lead investor for\nKlarogen, providing up to an additional $13 million in financing to the newly\ncreated company. Under the proposed financing structure, Microbix will retain\na majority equity stake in the newly created company.\n\n\nMicrobix estimates that the market opportunity for Urokinase is at least\nU.S. $500 million annually for indications including pulmonary embolism and\ncatheter management, with growth in oncology and ophthalmology potentially\nlarger than these first indications. Urokinase is an FDA-approved drug\nformerly marketed by Abbo...

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