MISSISSAUGA, ON, July 8 /PRNewswire-FirstCall/ - Nuvo Research Inc. (TSX: NRI), a Canadian drug development company focused on the research and development of drug products delivered to and through the skin using its topical and transdermal drug delivery technologies, and Paladin Labs Inc. (TSX: PLB), a leading Canadian specialty pharmaceutical company, today announced modifications to their existing licensing arrangements for Pennsaid and its follow-on product, Pennsaid Plus.
Paladin's wholly owned subsidiary, Squire Pharmaceuticals Inc., has made a $2,500,000 payment to Nuvo in lieu of future payments relating to Canadian sales of Pennsaid accruing prior to January 1, 2011. In addition, Squire will pay Nuvo a royalty on future Canadian sales of Pennsaid occurring after January 1, 2011.
Squire has also invested $2,000,000 in Nuvo by way of a two-year convertible debenture. The new debenture bears interest at 8% per annum and is convertible into Nuvo common shares at a price of $0.1380. The conversion price is based on Nuvo's volume weighted average trading price on the TSX for the five-day trading period ending July 4, 2008.
The existing Canadian Pennsaid Plus license between Nuvo and Squire has been amended to grant Squire the right to market, distribute and sell Pennsaid Plus in South Africa and Israel and, if certain conditions are met, Central and South America. Nuvo will receive royalties in respect of any sales of Pennsaid Plus by Squire in these additional territories. Pennsaid Plus is an improved gel version of Pennsaid that requires less frequent dosing. Patent applications are pending. Pennsaid Plus has not yet been approved by Health Canada or the U.S. Food and Drug Administration (FDA).
"These amended arrangements provide us with additional cash that
extends our financial runway beyond mid 2009 when we expect to receive FDA
approval of Pennsaid," said John London, Nuvo's Vice Chairman. "We continue
to complete the non-
|SOURCE Nuvo Research Inc.|
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