Bionutrics Signs Memorandum of Understanding to Acquire Lipoprotein, Inc.PHOENIX--(BUSINESS WIRE)--May 7, 1998--Bionutrics, Inc. (BNRX) today announced that it has signed a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. to acquire Lipoprotein lipoprotein (lĭp'əprō`tēn), any organic compound that is composed of both protein and the various fatty substances classed as lipids, including fatty acids and steroids such as cholesterol. , Inc., of San Mateo, CA. The transaction is subject to the completion of due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , negotiation of a definitive purchase agreement and approval by both companies' board of directors. Terms of the transaction were not disclosed. Lipoprotein, Inc., is a privately held pharmaceutical development company with a drug candidate that addresses lowering LDL cholesterol LDL cholesterol n. See low-density lipoprotein. LDL Cholesterol Low-density lipoprotein cholesterol is the primary cholesterol molecule. High levels of LDL increase the risk of coronary heart disease. and triglycerides Triglycerides Fatty compounds synthesized from carbohydrates during the process of digestion and stored in the body's adipose (fat) tissues. High levels of triglycerides in the blood are associated with insulin resistance. , and raising HDL cholesterol HDL cholesterol n. See high-density lipoprotein. HDL Cholesterol About one-third or one-fourth of all cholesterol is high-density lipoprotein cholesterol. . The company presently has an Investigational New Drug Application (IND) filed with the Food and Drug Administration (FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. ) and anticipates completion of phase III clinical trials in 1999. Ronald H. Lane, Ph.D., Chairman and Chief Executive Officer of Bionutrics, commented, "The acquisition of Lipoprotein would offer Bionutrics an early opportunity to have an approved pharmaceutical product for cardiovascular indications, which is directly in line with our overall strategy. In addition, Lipoprotein's technology would offer considerable opportunity to expand our functional food and dietary supplement business." Bionutrics is an emerging biopharmaceutical company founded to discover and develop novel, biologically active compounds derived from natural sources. Natural, biologically active compounds have potential applications as ethical drugs as well as functional food ingredients and dietary supplements. Bionutrics intends to develop and market products that target these three applications, and also market commodities that result from its processing of natural products. Bionutrics' first patented product contains tocotrienols from rice bran that are currently marketed as Clearesterol, an ingredient for dietary supplements. The first brand that has been introduced is evolvE Advanced Cardiovascular Dietary Supplement with cholesterol-lowering, anti-oxidation and healthy blood circulation properties. "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release contains forward looking statements that are subject to risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, product demand and market acceptance, new product development, reliance on key strategic alliances, availability of raw materials, the regulatory environment and governmental approval processes, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. CONTACT: Company Contact: Kim Visser Investor Relations Bionutrics, Inc. (602) 508-0112 or Investor Relations Contact: Donna N. Stein/Dan Durkin/Cindy Reid Morgen-Walke Associates, Inc. (212) 850-5600 or Press Contact: Richard Dukas/Ann Travers Morgen-Walke Associates, Inc. (212) 850-5600 |
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