FOR IMMEDIATE RELEASE JUNE 9, 2000
VANCOUVER, British Columbia—QLT Inc. (Nasdaq: QLTI, TSE:QLT) announced today the completion of the sale of worldwide rights to PHOTOFRIN® (porfimer sodium) to Axcan Pharma Inc. (TSE:AXP). Axcan will now assume responsibility for the development, manufacturing and marketing efforts for PHOTOFRIN and future costs and obligations relating to the PHOTOFRIN business.
Under the terms of the deal, QLT received an initial net cash payment of $2.5 million, 1,283,333 common shares of Axcan and $13.5 million in preferred shares of Axcan which are redeemable within 12 months in cash or additional common shares of Axcan. In addition, QLT is entitled to a deferred payment of $4 million and milestone payments based on future events of up to $20 million, payable in cash or preferred shares. All amounts are stated in Canadian dollars unless specified otherwise.
Concurrent with the completion of the sale, QLT paid approximately 45% of this consideration to Sanofi-Synthelabo Inc. in respect of the U.S. marketing rights to PHOTOFRIN in a similar combination of Axcan common shares, Axcan preferred shares, and cash.
PHOTOFRIN is currently approved for marketing in the U.S., Canada, Japan and eight European countries including the U.K. Applications remain pending in Italy, Ireland, Spain, Belgium, Greece, Austria, Norway, Sweden and Luxembourg.
The treatment is also being studied in a pivotal phase III trial at 35 centers throughout North America and Europe as a treatment for high-grade dysplasia associated with Barrett's esophagus, a pre-cancerous condition resulting from prolonged acid reflux, commonly known as heartburn. Barrett's esophagus causes the lining of the esophagus to transform into tissue similar to that lining the stomach, making the tissue more susceptible to cancer. There are currently no satisfactory treatments approved for Barrett's esophagus.
As a result of the sale of PHOTOFRIN to Axcan, QLT expects to receive a one-time gain of approximately $10 million (U.S.) in the second quarter.
QLT Inc. is a world leader in the development and commercialization of proprietary pharmaceutical products for use in photodynamic therapy, an new field of medicine utilizing light-activated drugs in the treatment of disease. QLT’s innovative science has advanced photodynamic therapy beyond applications in cancer towards breakthrough treatments in ophthalmology and autoimmune disease. For more information, you are invited to visit the QLT website at www.qltinc.com.
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QLT CONTACTS:
Elayne Wandler, Corporate Communications
Telephone: 1-800-663-5486, (604) 872-7881; Fax: (604) 873-0816
For more information, you are invited to visit the QLT web site at www.qltinc.com
Visudyne™ is a trademark of Novartis AG
QLT Inc. is listed on The Nasdaq Stock Market under the trading symbol “QLTI” and on The Toronto Stock Exchange under the trading symbol “QLT.”
The foregoing information contains forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results to be materially different from any future results, performance, or achievements expressed or implied by such statements. Such factors include: risks associated with the commercialization of Visudyne™ therapy; dependence on corporate relationships; manufacturing uncertainties; uncertainty of pricing and reimbursement; uncertainties relating to clinical trials and product development; the Company’s history of operating losses and uncertainty of future profitability; competition; rapid growth; uncertainty regarding patents and proprietary rights; product liability claims and insurance; no assurance of regulatory approval; government regulation; uncertainty of access to capital; anti-takeover provisions; and volatility of common share price; among others, all as described in the Company’s Annual Information Form on Form 10-K.
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