Endorex and Elan Form Second Drug Delivery Joint Venture.CHICAGO--(BUSINESS WIRE)--Oct. 23, 1998--Endorex Corporation (AMEX AMEX See: American Stock Exchange :DOR Dor or Dora, Canaanite seaport, ancient Palestine (modern Israel), N of Caesarea Palestinae. It was never a Jewish city but rather a Phoenician outpost. It was rebuilt by the Romans; still visible are the ruins of a temple and a theater. ) announced today that it has established a joint venture with Elan Corporation, plc (NYSE NYSE See: New York Stock Exchange :ELN Noun 1. ELN - a Marxist terrorist group formed in 1963 by Colombian intellectuals who were inspired by the Cuban Revolution; responsible for a campaign of mass kidnappings and resistance to the government's efforts to stop the drug trade; "ELN kidnappers target ) for the exclusive research, development and commercialization of products using Elan's Medipad(tm) delivery system for two drugs in undisclosed fields. Medipad(tm) is a lightweight, painless, disposable drug delivery system which combines the simplicity of a patch with the extensive delivery capabilities of an infusion pump infusion pump A device designed to deliver drugs and/or 'biologicals', at low doses and at a constant or controllable rate; ↑ rates of delivery in such devices may be associated with local hemolysis, compromising the potential benefits of a calibrated delivery . "The Medipad(tm) delivery system is an exciting patient-friendly alternative to standard infusion pumps which are often cumbersome and limit patient lifestyle," said Michael S. Rosen, President and Chief Executive Officer of Endorex. "The new Medipad(tm) joint venture with Elan extends our drug delivery alternatives in the area of life-threatening disease management." "Endorex and Elan are both dedicated to innovation in drug delivery," said John Devane, Ph.D., Executive Vice President of R&D, Elan Pharmaceutical Technologies, a division of Elan Corporation, plc. "We are enthusiastic about the progress we have made to date on our vaccine joint venture and believe the formation of this second joint venture indicates the strong commitment both parties feel about our partnership." Terms of the Transaction Endorex and Elan have contributed a total of $10.5 million in capital to the new joint venture, which is initially owned 80.1% by Endorex and 19.9% by Elan. Additionally, Elan has purchased for $8.4 million certain Endorex preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. which is exchangeable for stock in the joint venture or convertible into Endorex common stock at a premium to market. Elan has granted an exclusive worldwide license to the joint venture for the Medipad(tm) system for use in the delivery of specific drugs, received an initial $10 million license payment from the new joint venture, and may receive future milestones and royalties based on the joint venture's performance. The joint venture will record an expense in the fourth quarter of 1998 for the initial license fee paid to Elan. Endorex will consolidate its $8.0 million share of the expense and will simultaneously record Elan's purchase of the $8.4 million of exchangeable convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". . About Endorex Endorex Corporation is a drug delivery and cancer therapy company. Earlier this year, Endorex formed a joint venture with Elan Corporation, plc, to develop oral delivery systems for human and animal vaccines. Endorex continues to develop the Orasome(tm) delivery system for the oral delivery of proteins and peptides, independent of the joint venture with Elan. Additionally, the Company is focusing on two innovative directions in cancer therapy: immunotherapy and natural cancer therapy. Its immunotherapy drug, ImmTher(R), is currently being evaluated in a randomized ran·dom·ize tr.v. ran·dom·ized, ran·dom·iz·ing, ran·dom·iz·es To make random in arrangement, especially in order to control the variables in an experiment. Phase II trial for the treatment of Ewing's sarcoma Ewing's sarcoma, n.pr See sarcoma, Ewing's. , one of the most common forms of bone cancer in children and young adults, at two of the leading cancer centers in the U.S. Additionally, three NCI-sponsored Phase II clinical trials Noun 1. phase II clinical trial - a clinical trial on more persons than in phase I; intended to evaluate the efficacy of a treatment for the condition it is intended to treat; possible side effects are monitored phase II for Perillyl alcohol, a member of a new class of anti-cancer agents known as monoterpenes, have been initiated during 1998 to evaluate its efficacy in the treatment of breast, ovarian ovarian /ovar·i·an/ (o-var´e-an) pertaining to an ovary or ovaries. ovarian pertaining to an ovary. ovarian agenesis and prostate cancers. Perillyl alcohol is also being evaluated as a preventative agent for cancer in NCI-sponsored Phase I trials. The Company expects to initiate further Phase II trials in other types of cancer with both drugs later this year. This press release may contain certain forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that involve a number of known and unknown risks and uncertainties. Such statements are only predictions and actual events or results in future periods may differ materially from what is currently anticipated. In addition to the matters described in this press release, risk factors as described from time to time in Endorex's filings with the SEC including, but not limited to its most recent reports on Form 10-QSB and Form 10-KSB and its Registration Statement on Form S-2, may affect the results achieved by Endorex. The Company assumes no obligation to update the information in this release. Note to Investors and Editors: Endorex's press releases are available on the Internet at: http://www.endorex.com |
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