EDMONTON, Dec. 17 /PRNewswire-FirstCall/ - Quest PharmaTech Inc. (TSX Venture Exchange: QPT) today announced that it has signed an agreement with a multinational technology development company (the "Investor") to receive $3,000,000 to develop oncology products based on its SonoLight Technology. Under the terms of the agreement, Quest Pharma Tech Inc. ("Quest" or the "Company") has already received $1,000,000; and the balance of $2,000,000 will be paid within the next twelve months. In return for this non-equity funding, the Investor who requested to remain anonymous, will receive 35 percent of all future net revenue from the commercialization of Quest's oncology products. This agreement does not preclude Quest from out-licensing the oncology applications of SonoLight Technology to a third party.
The Company's lead oncology product from the SonoLight platform, SL052, is anticipated to enter a Phase I clinical trial for photodynamic therapy treatment of prostate cancer during the second half of 2008. The Company is also evaluating the same technology for the treatment of lung cancer and peritoneal carcinomatosis.
"I can't think of a better holiday present to our shareholders than establishing an accelerated oncology development program," said Dr. Madi R. Madiyalakan, Chief Executive Officer of Quest Pharma Tech Inc. "We are optimistic about the potential of both our oncology products and our dermatology program. Additionally, we believe that our partnerships with Paramount BioSciences and KMH Co. Ltd. will help us achieve our long-term growth objectives, including share price appreciation."
About Quest PharmaTech Inc.
The Corporation is a publicly traded (TSX Venture Exchange: QPT), Alberta-based pharmaceutical company committed to build shareholder value through discovery, development, and commercialization of new pharmaceutical products. It is developing a series of products for the treatment of cancer and dermatological conditions based on its proprietary photodynamic and sonodynamic therapy platform. The Company's lead product, SL017, is a topical formulation that is currently undergoing a 90 patient clinical trial in Canada for hair removal applications. Quest has signed an exclusive multinational license agreement with Paramount Biosciences, a global pharmaceutical and healthcare investment firm, to develop and market SL017 for dermatology applications. In addition, Quest also has an agreement with KMH Co. Ltd, a Korean pharmaceutical company, to market SL017 in Asia for hair removal applications.
Except for historical information, this press release may contain forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risk and uncertainties, which may cause but are not limited to, changing market conditions, the successful and timely completion of clinical studies, the establishment of corporate alliances, the impact of competitive products and pricing, new product development, uncertainties related to the regulatory approval process, and other risks detailed from time to time in the Company's ongoing quarterly and annual reporting.
"TSX Venture Exchange has neither approved nor disapproved of the
information contained herein."
|SOURCE Quest PharmaTech Inc.|
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