PreMD Retains License Agreement for Cancer Patents
January 08 2007 - 7:45AM
PR Newswire (US)
Resolution Reached; Litigation Terminated TORONTO, Jan. 8
/PRNewswire-FirstCall/ -- Predictive medicine company PreMD Inc.
(TSX: PMD; Amex: PME) ("PreMD") today announced the resolution of
the previously-announced litigation concerning allegations relating
to a license agreement for some of the intellectual property
involved in PreMD's cancer products. PreMD retains exclusive rights
to the ColorectAlert(TM), LungAlert(TM) and the breast cancer test
technologies. Under terms of the agreement, PreMD has entered into
an amendment of the existing licensing agreement relating to two
existing U.S. and Japanese patents for a technology that detects a
carbohydrate marker associated with cancerous and pre-cancerous
conditions. The new arrangements reduce the royalty payable by
PreMD to 7.5% from 10% on its revenues from products utilizing the
patents. In addition, the agreement eliminates all future milestone
payments that PreMD may have been required to pay under the initial
agreement. PreMD will pay $175,000 in two equal installments during
the first and second quarters of 2007, and provide a right to
utilize the patents. All releases have been exchanged and
litigation is being terminated. "We are pleased to put this matter
behind us. The new arrangements are favorable to PreMD and provide
us with additional upside to our cancer programs," said Dr. Brent
Norton, President and Chief Executive Officer of PreMD. "The
elimination of all milestones and reduction of royalty payments is
significant. We had anticipated paying as much as $104,000 in
milestone payments during 2007, which will no longer be the case.
In addition, the reduction in the royalty rate will allow us to
capture additional value from our promising cancer tests." "Over
the last few months our oncology clinical trial program has
continued unaffected and we expect to have interim or final data
from the EDRN ColorectAlert(TM), I-ELCAP LungAlert(TM) and
University of Louisville breast cancer test clinical trials in this
quarter," Dr. Norton continued. "Our timelines remain intact and we
look forward to advancing these tests toward commercialization."
About PreMD PreMD Inc. is a world leader in predictive medicine,
dedicated to developing rapid, non-invasive tests for the early
detection of life-threatening diseases. PreMD's cardiovascular
products are branded as PREVU(x) Skin Sterol Test. The company's
cancer tests include ColorectAlert(TM), LungAlert(TM) and a breast
cancer test. PreMD's head office is located in Toronto, and its
research and product development facility is at McMaster University
in Hamilton, Ontario. For further information, please visit
http://www.premdinc.com/. This press release contains
forward-looking statements. These statements involve known and
unknown risks and uncertainties, which could cause the Company's
actual results to differ materially from those in the
forward-looking statements. Such risks and uncertainties include,
among others, the successful development or marketing of the
Company's products, the competitiveness of the Company's products
if successfully commercialized, the lack of operating profit and
availability of funds and resources to pursue R&D projects, the
successful and timely completion of clinical studies, product
liability, reliance on third-party manufacturers, the ability of
the Company to take advantage of business opportunities,
uncertainties related to the regulatory process, and general
changes in economic conditions. In addition, while the Company
routinely obtains patents for its products and technology, the
protection offered by the Company's patents and patent applications
may be challenged, invalidated or circumvented by our competitors
and there can be no guarantee of our ability to obtain or maintain
patent protection for our products or product candidates. Investors
should consult the Company's quarterly and annual filings with the
Canadian and U.S. securities commissions for additional information
on risks and uncertainties relating to the forward-looking
statements. Investors are cautioned not to rely on these
forward-looking statements. PreMD is providing this information as
of the date of this press release and does not undertake any
obligation to update any forward-looking statements contained in
this press release as a result of new information, future events or
otherwise. (x)Trademark DATASOURCE: PreMD Inc. CONTACT: Ron
Hosking, Chief Financial Officer, Tel: (416) 222-3449 ext. 24,
Email: ; Rhonda Chiger, Rx Communications Group, LLC, Tel: (917)
322-2569, Email:
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