Criticare Systems Inc. increases ownership in Immtech International Inc. to over 35 percent.MILWAUKEE--(BUSINESS WIRE)--Oct. 19, 1995--Criticare Systems Inc. (NASDAQ/NMS:CXIM), a manufacturer and marketer of medical monitoring equipment, today announced that it has signed a definitive agreement to purchase, through its wholly-owned subsidiary, Criticare Biomedical bi·o·med·i·cal adj. 1. Of or relating to biomedicine. 2. Of, relating to, or involving biological, medical, and physical sciences. Inc., an additional 34 percent equity interest in Immtech International Inc., a high technology therapeutic company headquartered in Chicago. Criticare Biomedical Inc., has agreed to purchase Immtech stock from a private investor group, in exchange for 333,154 new shares of Criticare common stock and a seven-year note payable by Criticare Biomedical for $1,240,000 (at 7 percent interest). Substantially all of the $1.9 million purchase price is anticipated to be allocated to purchase Research and Development, which for financial reporting purposes, will be expensed during the second quarter of fiscal year 1996. Immtech International Inc. is engaged in the development of proprietary protein-based therapeutic products designed to reinforce the human body's natural immune defense systems. Although the company is in the developmental stage of operations and has incurred substantial losses to date and will need additional capital before it can bring any of its potential products to market, Immtech has already conducted quasi Phase II human clinical trials of its proprietary acute phase protein Acute-phase proteins are a class of proteins whose plasma concentrations increase (positive acute phase proteins) or decrease (negative acute phase proteins) in response to inflammation. This response is called the acute-phase reaction (also called acute phase response). , mCRP, on HIV-positive patients in Germany. During the course of such trials, researchers found that mCRP therapy resulted in the activation of multiple survival mechanisms, including increases in the number of disease-fighting CD-4 cells and the number of platelets (which strengthen blood vessels Blood vessels Tubular channels for blood transport, of which there are three principal types: arteries, capillaries, and veins. Only the larger arteries and veins in the body bear distinct names. and assist in blood clotting blood clotting, process by which the blood coagulates to form solid masses, or clots. In minor injuries, small oval bodies called platelets, or thrombocytes, tend to collect and form plugs in blood vessel openings. ). In animal tests, the same protein compound has shown effacacy in the treatment of breast cancer and leukemia. Immtech has also developed a patented compound which permits removal of immune complexes Immune complexes Clusters or aggregates of antigen and antibody bound together. Mentioned in: Wegener's Granulomatosis from a patient's circulation. This compound can be used in a proprietary disposable (similar to a kidney dialysis Dialysis, Kidney Definition Dialysis treatment replaces the function of the kidneys, which normally serve as the body's natural filtration system. coil) to treat rheumatoid arthritis rheumatoid arthritis Chronic, progressive autoimmune disease causing connective-tissue inflammation, mostly in synovial joints. It can occur at any age, is more common in women, and has an unpredictable course. , lupus lupus (l  `pəs), noninfectious chronic disease in which antibodies in an individual's immune system attack the body's own substances. and multiple sclerosis. Regarding other products, Immtech recently agreed to license one of its diagnostic tests to Centocor Inc. (NASDAQ/NMS:CNTO CNTO China National Tourist Office ), a major biological research and therapeutic drug company, in exchange for an initial cash payment and future royalty payments. The patented procedure can measure the amount of alcohol which a person has consumed over a three-week period, and management believes this test may allow government and industry to more effectively comply with public safety and job performance requirements. Criticare believes that managed care will provide opportunities for products that (1) positively ``influence the outcomes'' of acute surgical patients (by safely reducing hospital stays) and/or (2) assist hospitals in ``disease state management'' for chronically ill patients (e.g., to ``influence outcome'' and improve their quality of life while reducing cost). According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Gerhard Von der Ruhr, president and chief executive officer of Criticare Systems Inc., ``The investment in Immtech will position Criticare to better address and capitalize on the opportunities afforded by managed care. Our role will be to provide, through our core business, innovative and cost-effective monitors that can positively `affect outcomes' while we pursue, through Immtech International, the development of proprietary therapeutic drugs which can directly influence the `management of their disease.''' Von der Ruhr continued, ``Criticare's board of directors deemed it prudent and advantageous to increase our equity interest in Immtech based on the validity of its technology and the potential revealed in its clinical trials on both animals and humans.'' Criticare Systems Inc. designs, manufactures and markets cost-effective patient monitoring systems and noninvasive sensors for a wide range of hospital and alternate health care environments throughout the world. Through its ownership in Immtech International Inc., the company hopes to participate in the development of proprietary products designed to reinforce the human body's natural immune systems and to provide unique diagnostic capabilities. Criticare Systems' common stock is traded on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market System under the symbol ``CXIM.'' CONTACT: Criticare Systems Inc., Milwaukee Gerhard Von der Ruhr, 414/798-8282 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion