Viropro Inc. Signs its First Major Agreement (MOU) with Potential Revenues of U.S. $27 Million; Agreement Reached with BioChallenge, a Tunisia-Based Pharmaceutical Company
2006-06-15 10:30 ET - News Release
MONTREAL, June 15 /CNW/ - Today, Jean-Marie Dupuy, President & Chief Executive Officer of Viropro Inc., - "Viropro" or "the company" (OTC BB: VPRO) - is proud to announce the signing of a Memorandum of Understanding (MOU) with BioChallenge, a privately-held pharmaceutical company operating in Tunis. This binding MOU aims at working jointly at the development and the production of several therapeutic proteins. This first MOU is in accordance with our model built on recurring sales revenues and short and long term profitability.
This agreement would bring Viropro its first revenues, based on specific objectives consisting of fixed licensing fees, development milestones, technology transfer and royalties varying from 5% to 10% of net sales depending on the total volume. Revenues generated from the technology transfer of these first 3 proteins to Viropro should reach approximately U.S. $10.5 million during this 4-year period, to which royalties estimated at U.S. $17 million will be added after year 4 over a 10-year period. Products sales were estimated with a conservative market penetration.
After completion of the feasibility study by the end of July 2006, the development and technology transfer of the first 3 therapeutic proteins will be done over a 4-year period. The first proteins to be brought to market starting in 2009 will be Erythropoietin, Interferon Beta and growth factors such as G-CSF used to treat diseases such as cancer and multiple sclerosis. "Today's announcement is a turning point for Viropro as we are expanding our horizons in terms of revenue growth, the building out of a worldwide network as exemplified by this important new agreement," said Jean-Marie Dupuy.
The regions attributed to BioChallenge to market these products include Africa, Middle-East, Indonesia, Pakistan and the European Community. Mr. Mahjoub Ameur, Chaiman of the Board of BioChallenge stated: "This is an important milestone for BioChallenge as it will be the first implementation of a manufacturing facility for therapeutic proteins in this part of the world. It will allow treating unmet medical needs at a lower price while ensuring an attractive return on investment."
Viropro is presently negotiating with several pharmaceutical companies with the objective of signing further technological transfers in other regions of the globe.
About Viropro Inc.
Viropro Inc. operates mainly through its subsidiary Viropro International Inc. with its Head Office in Montreal, Canada. Viropro is a company specializing in marketing its know-how and expertise in technology transfer for industrial production of therapeutic proteins. Besides today's announcement, Viropro has concluded other strategic alliances with renowned scientific and business partners, both at the national and international levels. Viropro relies on a business model built to generate short and medium term recurrent revenues while increasing the value of stock for both the company and its shareholders.
For more information on Viropro Inc, please visit our website on www.viropro.com
About BioChallenge
BioChallenge is a privately-held pharmaceutical company based in Tunis (Tunisia). The company's business model is the production and marketing of biological therapeutic proteins acquired from licensing agreements. BioChallenge aims at a large market of more than 500 millions people including the 5 countries of UMA (Union Maghreb Arabe: Morocco, Algeria, Tunisia, Lybia and Mauritania), Africa, Middle-East, Indonesia and the European Community. Its mission is to answer unmet vital biological products' needs from emerging countries at a lesser price than current biological drugs while ensuring an attractive return on investment.
Viropro Inc.'s Safe Harbor Statement
Except for any historic information contained herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, which are subject to section 27A of the Securities Act of 1933 and section 21E of the Exchange Act of 1934, and are subject to safe harbor created by these sections. Any statements that express or involve discussions with respect to predictions, beliefs, plans, projections, objectives, goals, assumptions of future events or performances are not statements of historical fact and may be "forward-looking statements". Forward-looking statements in this release may be identified through the use of such words as "expects", "anticipates", "estimates", "believes", or statements indicating certain actions "may", "could", or "might" occur. Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements, which involve numerous risks and uncertainties, including the Company's ability to market its products and services in a competitive environment as well as other factors.
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quote:Originally posted by Prdponce: Got some of this
Viropro Inc. Signs its First Major Agreement (MOU)
What part of Micro Penny board did you not understand?
What the Puck is your problem? Quit policing the Danm## board and trade.... Did not some told you yesterday to look around the board see how many over .10 are posted here.... If your not interested skip it...
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