Chemokine Therapeutics Re-Acquires Licensing Rights to CTCE-0214 From PPD

19-Apr-2006

Chemokine Therapeutics Corp. announced that it has entered into a definitive agreement with Pharmaceutical Product Development, Inc. to re-acquire licensing rights on its compound CTCE-0214 that it had previously granted to PPD in April 2003. PPD will retain an interest in the CTCE-0214 program through potential future milestone payments.

Under the agreement, Chemokine will pay PPD US$100,000 cash on closing, and up to US$2.5 million in milestone payments as follows: US$250,000 cash upon the dosing of the first subject in a phase III clinical trial of CTCE-0214; US$250,000 cash upon filing a New Drug Application with the United States Food and Drug Administration ("FDA") with respect to CTCE-0214; US$1,000,000 cash upon approval by the FDA of CTCE-0214 for any therapeutic use; and 50 percent of the first net sales of CTCE-0214 up to US$1,000,000.

The agreement further provides that Chemokine will buy back the 2,000,000 convertible preferred shares held by PPD for US$0.86 per share, after any commissions. In the alternative, at the option of Chemokine, the agreement provides that PPD may convert some or all of the 2,000,000 convertible preferred shares into common shares and resell the common shares to a third-party buyer, with Chemokine buying back the preferred shares that are not converted by PPD. The transaction will close on or before May 27, 2006.

Chemokine's drug CTCE-0214 is designed to mobilize white blood cells and stem cells for patients with low white blood cell count and those requiring stem cell transplantation. CTCE-0214 is a stable peptide agonist of stromal cell-derived factor-1 (SDF-1), a key signaling molecule in the proliferation, homing, engraftment and expansion of hematopoietic stem cells and white blood cells. SDF-1 is also believed to work as a traffic controller for infection-fighting white blood cells and progenitor cell migration providing an essential function to combat immunosuppression. CTCE-0214, based on Chemokine's preclinical research, mimics the activity of the natural chemokine SDF-1 by increasing the level of white blood cells (neutrophils), bleeding prevention cells (platelets) and stem cells (primitive blood forming cells) in the blood.

https://www.bionity.com/en/news/54049/chemokine-therapeutics-re-acquires-licensing-rights-to-ctce-0214-from-ppd.html