PreMD Inc. - License, Development and Supply Agreements to Terminate
September 26 2006 - 7:52AM
PR Newswire (US)
PreMD to Reacquire Rights to PREVU(x) from McNeil Consumer
Healthcare TORONTO, Sept. 26 /PRNewswire-FirstCall/ -- Predictive
medicine company PreMD Inc. (TSX: PMD; Amex: PME) today announced
that the license, development and supply agreements with McNeil
Consumer Healthcare (McNeil) for PreMD's PREVU(x) Skin Sterol Test
will terminate in three months. As a result, PreMD will reacquire
all worldwide rights for the PREVU(x) family of skin sterol tests
and will be in a position to pursue other opportunities to
commercialize the products. As part of the termination provisions
of the agreement, McNeil will be bound by the terms of the
agreement and will continue to support PREVU(x) for a period of
three months to ensure a smooth transition to PreMD. "We have been
advised by McNeil that there has been a change in their strategic
focus" said Dr. Brent Norton, President and Chief Executive Officer
of PreMD. "By reacquiring the rights to the PREVU(x) technology, we
will realize significantly improved revenue on a per unit basis. We
will be evaluating our strategic options for the commercialization
of both PREVU(x) POC and PREVU(x) LT and will assess which markets
we can manage effectively on our own and in which markets we will
pursue partnerships. In the interim, our internal team will work
closely with McNeil and continue to build on the momentum that has
been generated in market segments such as in-store CAD health
promotion, clinics, and within the life insurance industry." Dr.
Norton continued, "at this time the value and the prospects for the
technology have never been better. PreMD has recently achieved a
number of significant milestones including a CE-Mark for PREVU(x)
LT and the FDA clearance for our new POC reader. With trial results
expected from the PREPARE (life insurance market) and PASA (heart
attack data) studies in 2006, and ARISE in 2007, the technology is
extremely well positioned for further growth. In many ways, this
represents an opportunity to develop partnerships from an enhanced
position that the collaboration with McNeil afforded us." "Our
business is in a good financial position to manage this change.
While we had originally anticipated receiving certain milestone
payments from McNeil, which will now not be forthcoming after the
three-month transition period, the potential contribution from the
commercialization of PREVU(x) could be dramatically improved. We
recently completed all of the significant clinical trials and, as a
result, our cash burn is already optimized. While we will not reach
the objective of moving toward being cash flow neutral by year-end,
we expect that our opportunities for 2007 will actually improve,"
stated Dr. Norton. PREVU(x) non-invasively measures the amount of
cholesterol (sterol) that has accumulated in the skin tissues, as
opposed to blood, by painlessly collecting skin cells from the palm
of the hand using a specially designed adhesive strip. There is no
fasting or other patient preparation required for the test.
Clinical studies have shown that as cholesterol accumulates on
artery walls it also accumulates in other tissues, including the
skin. High levels of skin sterol are correlated with higher
incidence of coronary artery disease (CAD). PREVU(x) POC is cleared
for sale in Canada, the U.S. and Europe where it is available for
sale to medical professionals. PREVU(x) LT is the lab-processed
form of the test, and is currently CE-marked in Europe. A Class II
Device license application has been submitted to Health Canada's
Therapeutic Products Directorate (TPD) for clearance of PREVU(x) LT
and PreMD is currently preparing a 510(k) for submission to the
U.S. Food and Drug Administration (FDA).
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Conference Call and Webcast PreMD will hold a conference call and
webcast Tuesday, September 26, 2006, at 10 a.m. ET. To access the
conference call, please dial (416) 644-3416 or (866) 250-4907. A
live audio webcast will be available at http://www.premdinc.com/,
and will be subsequently archived for three months. To access the
replay via telephone, which will be available until Tuesday,
October 3, 2006, please dial (416) 640-1917 or (877) 289-8525 and
enter the passcode 21204649 followed by the number sign.
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About PreMD PreMD Inc. is a world leader in predictive medicine,
dedicated to developing rapid, non-invasive tests for the early
detection of life-threatening diseases. PreMD's cardiovascular
products are branded as PREVU(x) Skin Sterol Test and the company's
cancer tests include ColorectAlert(TM), LungAlert(TM) and a breast
cancer test. PreMD's head office is located in Toronto, and its
research and product development facility is at McMaster University
in Hamilton, Ontario. For further information, please visit
http://www.premdinc.com/. For more information about PREVU(x),
please visit http://www.prevu.com/ or email This press release
contains forward-looking statements. These statements involve known
and unknown risks and uncertainties, which could cause the
Company's actual results to differ materially from those in the
forward-looking statements. Such risks and uncertainties include,
among others, the successful development or marketing of the
Company's products, the competitiveness of the Company's products
if successfully commercialized, the lack of operating profit and
availability of funds and resources to pursue R&D projects, the
successful and timely completion of clinical studies, product
liability, reliance on third-party manufacturers, the ability of
the Company to take advantage of business opportunities,
uncertainties related to the regulatory process, and general
changes in economic conditions. In addition, while the Company
routinely obtains patents for its products and technology, the
protection offered by the Company's patents and patent applications
may be challenged, invalidated or circumvented by our competitors
and there can be no guarantee of our ability to obtain or maintain
patent protection for our products or product candidates. Investors
should consult the Company's quarterly and annual filings with the
Canadian and U.S. securities commissions for additional information
on risks and uncertainties relating to the forward-looking
statements. Investors are cautioned not to rely on these
forward-looking statements. PreMD is providing this information as
of the date of this press release and does not undertake any
obligation to update any forward-looking statements contained in
this press release as a result of new information, future events or
otherwise. (x) Trademark DATASOURCE: PreMD Inc. CONTACT: Brent
Norton, President & CEO, Tel: (416) 222-3449, ext. 22, Email: ;
Ron Hosking, Chief Financial Officer, Tel: (416) 222-3449 ex 24,
Email: ; Lan Lai-Minh, Director of Communications, McNeil Consumer
Healthcare, (519) 826-6226 ext: 5215
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