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RECEPTAGEN LTD. ACQUIRES RYAN PHARMACEUTICALS; GAINS U.S. RIGHTS TO POTENTIAL IMMUNE STIMULANT

 VANCOUVER, British Columbia, Nov. 8 /PRNewswire/ -- Receptagen Ltd. (Alberta Stock Exchange: RCG), a public Canadian biotechnology company, today announced the execution of a share exchange agreement with privately held Ryan Pharmaceuticals, Inc., of Bellevue, Wash., to make Ryan a wholly owned subsidiary of Receptagen. Ryan owns the exclusive U.S. patent rights to Coenzyme Q1O (CoQ10), a potential immune stimulant.
 Under the agreement, Receptagen Ltd. will acquire Ryan Pharmaceuticals for 750,000 shares of Receptagen and a 5 percent royalty on the net sales of CoQ10. Of the 750,000 shares, 250,000 will be issued on the closing of the agreement, 250,000 will be issued upon Receptagen entering into Phase-I clinical trials of CoQ10, and 250,000 will be issued upon the filing or transfer of an Investigational New Drug application for the treatment of AIDS with CoQ10.
 In addition, Receptagen will provide an initial payment of US$15,000 to the shareholders of Ryan and will pay the shareholders up to US$200,000 for expenses incurred in connection with the patent. The agreement is subject to the approval of the Alberta Stock Exchange. Other financial details were not disclosed.
 In order to finance the development of CoQ10 and to further commercialize Receptagen's growth blocker technology, the company has entered into an agreement with Equity Capital Group, a division of Canaccord Capital Corp., to carry out a special-warrant private placement of $8 million to $10 million Receptagen is seeking, also announced today.
 Coenzyme Ql0
 CoQ10 is a naturally occurring, non-toxic substance that plays a key role in energy metabolism of the body and is also an antioxidant. Formulated as a drug, the substance has been marketed worldwide by other companies for several years, and has been prescribed for more than 40 million patients worldwide. CoQl0 has been approved in Japan for the treatment of congestive heart failure and is pending approval in Europe for the same indication.
 "Our interest in CoQ10 is the evidence that it also acts as an immune stimulant," said Dr. Morgan. "Results of early Phase-I clinical trials in patients with full-blown AIDS have shown improved immune function and the alleviation of objective and subjective disease symptoms. Pilot Phase-I clinical testing was originally conducted under an Investigational New Drug application, which Receptagen will resume as a result of the corporate acquisition.
 Receptagen Ltd. is a Canadian public company operating through its U.S. wholly owned subsidiary, Receptagen Corp. Founded in 1992, the company is engaged in developing proprietary "growth-blocker" drugs for the treatment of cancer and other life-threatening diseases marked by uncontrolled cell proliferation.
 -0- 11/8/93
 /CONTACT: A. Charles Morgan, Ph.D., president and chief technical officer or Receptagen Ltd., 206-778-5260; Charles Versaggi, Ph.D., of Gable/Versaggi Biocommunications, 408-358-4162; Doug Ford or Gail Thurston of Enterprise Development Corp., 604-685-0114; or Clarence Debelle, 416-869-7363, or David Horton, 604-643-7671, both of Canaccord Capital Corp./
 (RCG.)


CO: Receptagen Ltd.; Ryan Pharmaceuticals, Inc. ST: British Columbia, Washington IN: MTC SU: TNM

WB-TW -- NY050 -- 1788 11/08/93 12:55 EST
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Publication:PR Newswire
Date:Nov 8, 1993
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