Strengthens balance sheet by $10 million VANCOUVER, Sept. 19
/PRNewswire-FirstCall/ -- AnorMED Inc. (NASDAQ:ANOR; TSX:AOM) today
announced it will receive U.S. $10 million in cash in consideration
for amending the license agreement for its proprietary anti-cancer
drug picoplatin (NX473) to expand the licensed territories to
worldwide, forego future development milestones and reduce royalty
payments. AnorMED licensed picoplatin to Poniard Pharmaceuticals
Inc. (NASDAQ:PARD), formerly NeoRx Corporation, in April 2004.
Under the terms of the new amendment, AnorMED will receive a cash
payment of U.S.$5 million by October 16, 2006 and an additional
cash payment of U.S.$5 million by March 31, 2007. AnorMED will
continue to be eligible to receive a reduced potential partnership
revenue stream from Poniard within the first year of this amendment
and single digit royalty payments on product sales, assuming future
marketing approval. AnorMED retains rights to a total of U.S.$5
million in commercialization milestone payments if certain sales
targets are achieved. The amendment expands Poniard's licensed
rights to picoplatin to include Japan. Paul Brennan, Acting
President of AnorMED said, "this license agreement amendment is an
excellent example of the unappreciated valuable assets of our
Company that appear not to be represented in the hostile offer by
Genzyme Corp. (NASDAQ:GENZ). This partial monetization has provided
approximately $0.25 per share in cash while maintaining a
significant financial interest in the potential future success of
picoplatin." Ken Galbraith, Chairman and Interim CEO of AnorMED,
stated "the license amendment is consistent with the Company's
focus on maximizing shareholder value. It adds non-dilutive capital
that can be deployed for the successful execution of our business
plan, including completing pivotal Phase III trials for our lead
product MOZOBIL in cancer patients undergoing stem cell
transplants, expanding clinical studies for MOZOBIL in treating
patients with various leukemias and developing our second product
AMD070, now in proof-of-principle Phase I/II clinical trials in HIV
patients." Under the terms of the original agreement from 2004,
AnorMED granted Poniard exclusive global rights excluding Japan to
develop, manufacture and commercialize picoplatin. AnorMED received
a one-time upfront milestone payment of U.S.$1 million cash and
U.S.$1 million in Poniard common stock. In addition, AnorMED was
eligible to receive additional milestone payments of up to U.S.$13
million, payable in cash or a combination of cash and Poniard
common stock, and royalty payments of up to 15% of product sales,
assuming the future approval for marketing by regulatory
authorities. Poniard, a specialty pharmaceutical company focused on
oncology, announced August 17, 2006 that it had completed
enrollment in a Phase II clinical trial evaluating picoplatin for
the treatment of small cell lung cancer. Poniard is also evaluating
picoplatin in Phase I/II clinical trials for the treatment of
colorectal and prostate cancer. Picoplatin is an intravenous
chemotherapeutic agent designed to overcome platinum resistance
associated with the treatment of solid tumors. According to
Poniard, testing in more than 500 patients in Phase I and II safety
and efficacy studies indicates that picoplatin may have a more
manageable safety profile with fewer side effects than currently
available platinum-based therapies. More information and where to
find it On September 5, 2006, AnorMED filed with the United States
and Canadian securities regulatory authorities a Directors'
Circular and Tender Offer Solicitation/Recommendation Statement on
Schedule 14D-9 in which AnorMED's Board of Directors recommended
that shareholders reject the September 1, 2006 hostile offer from
Dematal Corp., a wholly-owned subsidiary of Genzyme Corporation.
The Circular describes the reasons for the Board's recommendation
that shareholders reject the Genzyme Offer. Investors and
shareholders are strongly advised to read the Directors' Circular
and Tender Offer Solicitation/Recommendation Statement on Schedule
14D-9, as well as any amendments and supplements to those
documents, because they contain important information. Investors
and shareholders may obtain a copy of the Directors' Circular at
http://www.sedar.com/ and the Tender Offer
Solicitation/Recommendation Statement on Schedule 14D-9 from the
SEC website at http://www.sec.gov/. Free copies of these documents
can also be obtained by directing a request to AnorMED's Secretary
at Suite 200 - 20353 64th Avenue, Langley, British Columbia, Canada
V2Y 1N5; telephone (604) 530-1057. Other reports filed by or
furnished by AnorMED to the SEC and applicable securities
commission in Canada may also be obtained free of charge at
http://www.sec.gov/, http://www.sedar.com/ or from AnorMED's
Secretary. More information about AnorMED is available online at
http://www.anormed.com/. YOU SHOULD READ THE DIRECTORS' CIRCULAR OR
TENDER OFFER SOLICITATION/RECOMMENDATION STATEMENT CAREFULLY BEFORE
MAKING A DECISION CONCERNING THE GENZYME OFFER. About AnorMED Inc.
AnorMED is a chemistry-based biopharmaceutical company focused on
the discovery, development and commercialization of new therapeutic
products in the areas of hematology, oncology and HIV, based on the
Company's research into chemokine receptors. The Company's product
pipeline includes MOZOBIL, currently in pivotal Phase III studies
in cancer patients undergoing stem cell transplants; AMD070,
currently in proof of principle Phase I/II studies in HIV patients;
and several novel classes of compounds in pre-clinical development
that target specific chemokine receptors known to be involved in a
variety of diseases. Upcoming product announcements AnorMED expects
to release in the first half of 2007, top-line data from two
pivotal Phase III studies for the use of MOZOBIL in cancer patients
undergoing stem cell transplantation. Based on successful results
of these studies, the Company plans to file a new drug application
("NDA") for marketing approval with the FDA in the second half of
2007 and with Canadian and European regulators in 2008. Additional
data relating to MOZOBIL is expected to be presented at the
American Society of Hematology ("ASH") meeting scheduled to be held
in Orlando, Florida from December 9 to 13, 2006. In the next few
months, the Company also expects to initiate clinical studies for
MOZOBIL for use as a chemosensitizer for treatment of leukemia
patients. In February 2007, the Company expects to present updated
clinical data on the development of AMD070 in HIV patients at the
Conference on Retroviruses and Opportunistic Infections ("CROI")
scheduled to be held in Los Angeles, California. FORWARD-LOOKING
STATEMENTS This news release contains forward-looking statements
within the meaning of the United States Private Securities
Litigation Reform Act of 1995, and forward looking information
within the meaning of applicable securities laws in Canada,
(collectively referred to as "forward-looking statements").
Statements, other than statements of historical fact, are
forward-looking statements and include, without limitation,
statements regarding the Company's strategy, future operations,
timing and completion of clinical trials, prospects and plans and
objectives of management. The words "anticipates", "believes",
"budgets", "could", "estimates", "expects", "forecasts", "intends",
"may", "might", "plans", "projects", "schedule", "should", "will",
"would" and similar expressions are often intended to identify
forward-looking statements, which include underlying assumptions,
although not all forward-looking statements contain these
identifying words. By their nature, forward-looking statements
involve numerous assumptions, known and unknown risks and
uncertainties, both general and specific, that contribute to the
possibility that the predictions, forecasts, projections and other
things contemplated by the forward-looking statements will not
occur. We caution readers not to place undue reliance on these
statements as a number of important factors could cause our actual
results to differ materially from the beliefs, outlooks, plans,
objectives, expectations, anticipations, estimates and intentions
expressed in such forward-looking statements. Although our
management believes that the expectations represented by such
forward-looking statements are reasonable, there is significant
risk that the forward-looking statements may not be achieved, and
the underlying assumptions thereto will not prove to be accurate.
Forward-looking statements in this news release include, but are
not limited to, statements about: AnorMED's expectation that it
will receive U.S.$10 million in cash (U.S.$5 million by October 16,
2006 and U.S.$5 million by March 31, 2007) pursuant to the terms of
an amendment to its license agreement with Poniard for its
proprietary anti-cancer drug picoplatin (NX473); AnorMED's
expectation that it will continue to be eligible to receive a
potential partnership revenue stream from Poniard within the first
year of the amendment to the license agreement; AnorMED's
expectation that it will receive single digit royalty payments from
Poniard on product sales, assuming future marketing approval;
AnorMED's expectation that it retains a total of U.S. $5 million in
commercial milestone payments if certain sales targets are
achieved; AnorMED's expectation that the amendment to the license
agreement will add to its cash resources and allow AnorMED to
successfully execute its business plan to commercialize and develop
its lead products, while also retaining a significant financial
interest in the potential future success of picoplatin; AnorMED's
expectation, based on representations from Poniard, that testing in
more than 500 patients in Phase I and II safety and efficacy
studies indicates that picoplatin may have a more manageable safety
profile with fewer side effects than currently available
platinum-based therapies; AnorMED's expected release, in the first
half of 2007, of top-line data and successful results from two
pivotal Phase III studies for the use of MOZOBIL in cancer patients
undergoing stem cell transplantation; AnorMED's plans to file a NDA
for marketing approval with the U.S. FDA in the second half of
2007, and with Canadian and European regulators in 2008; AnorMED's
expectation that in the next few months it will initiate clinical
studies for MOZOBIL for use as a chemosensitizer for treatment of
leukemia patients; AnorMED's expectation that it can clinically
develop its second product, AMD070, now in proof-of-principle Phase
I/II clinical trials in HIV patients; AnorMED's expectation that it
will present additional data relating to MOZOBIL at the ASH meeting
to be held in Orlando, Florida from December 9 to 13, 2006; and
AnorMED's expectation that it will present updated clinical data on
the development of AMD070 in HIV patients at the CROI meeting to be
held in Los Angeles, California in February 2007. With respect to
the forward-looking statements contained in this news release, the
Company has made numerous assumptions regarding, among other
things: AnorMED's ability to collect the U.S.$10 million in cash
(U.S.$5 million by October 16, 2006 and U.S.$5 million by March 31,
2007) owed to it pursuant to the terms of an amendment to its
license agreement with Poniard for its proprietary anti-cancer drug
picoplatin; AnorMED's ability to continue to be eligible to receive
a potential partnership revenue stream from Poniard within the
first year of the amendment to the license agreement; AnorMED's
ability to receive single digit royalty payments from Poniard on
product sales, assuming future marketing approval; AnorMED's
ability to retain a total of U.S. $5 million in commercial
milestone payments if certain sales targets are achieved; AnorMED's
ability to use the cash resources generated from the amendment to
the license agreement to successfully execute on its business plan
to commercialize and develop its lead products, while also
retaining a significant financial interest in the potential future
success of picoplatin; AnorMED's ability to rely on representations
from Poniard that picoplatin may have a more manageable safety
profile with fewer side effects than currently available
platinum-based therapies; AnorMED's ability to release, in the
first half of 2007, top-line data from its two pivotal Phase III
studies for the use of MOZOBIL in cancer patients undergoing stem
cell transplantation; AnorMED's ability to file a NDA for marketing
approval with the U.S. FDA in the second half of 2007, and with
Canadian and European regulators in 2008; AnorMED's ability to
initiate its clinical studies for MOZOBIL for use as a
chemosensitizer for treatment of leukemia patients in the next few
months; AnorMED's ability to clinically develop its second product,
AMD070, now in proof-of-principle Phase I/II clinical trials in HIV
patients; AnorMED's ability to present additional data relating to
MOZOBIL in December 2006; and AnorMED's ability to present updated
data on the development of AMD070 in HIV patients in February 2007.
The foregoing list of assumptions is not exhaustive. Actual results
or events could differ materially from the plans, intentions and
expectations expressed or implied in any forward looking
statements, including the underlying assumptions thereto, as a
result of numerous risks, uncertainties and other factors
including: AnorMED may not be able to collect the U.S.$10 million
in cash (U.S.$5 million by October 16, 2006 and U.S.$5 million by
March 31, 2007) owed to it pursuant to the terms of an amendment to
its license agreement with Poniard for its proprietary anti-cancer
drug picoplatin; AnorMED may not continue to be eligible to receive
a potential partnership revenue stream from Poniard within the
first year of the amendment to the license agreement; AnorMED may
not receive single digit royalty payments from Poniard on product
sales, assuming future marketing approval; AnorMED may not be able
to retain a total of U.S. $5 million in commercial milestone
payments if certain sales targets are achieved; AnorMED may not be
able to use the cash resources generated from the amendment to the
license agreement to successfully execute on its business plan to
commercialize and develop its lead products, while also retaining a
significant financial interest in the potential future success of
picoplatin; representations from Poniard that picoplatin may have a
more manageable safety profile with fewer side effects than
currently available platinum-based therapies may not be reliable;
AnorMED may not have the ability to release, in the first half of
2007, top-line data from its two pivotal Phase III studies for the
use of MOZOBIL in cancer patients undergoing stem cell
transplantation; AnorMED may not have the ability to file a NDA for
marketing approval with the U.S. FDA in the second half of 2007,
and with Canadian and European regulators in 2008; AnorMED may not
have the ability to initiate its clinical studies for MOZOBIL for
use as a chemosensitizer for treatment of leukemia patients in the
next few months; AnorMED may not have the ability to clinically
develop its second product, AMD070, now in proof-of-principle Phase
I/II clinical trials in HIV patients; AnorMED may not have the
ability to present additional data relating to MOZOBIL in December
2006; AnorMED may not have the ability to present updated data on
the development of AMD070 in HIV patients in February 2007; AnorMED
may not be able to develop and obtain regulatory approval for
MOZOBIL in stem cell transplant indications and any future product
candidates in its targeted indications; AnorMED may not be able to
establish marketing and sales capabilities for launching MOZOBIL in
stem cell transplant indications; the costs of any future products
in AnorMED's targeted indications may be greater than anticipated;
AnorMED relies on third parties for the continued supply and
manufacture of MOZOBIL; AnorMED may face unknown risks related to
intellectual property matters; AnorMED may face competition from
other pharmaceutical or biotechnology companies; and further equity
financing may substantially dilute the interests of our
shareholders. Although we have attempted to identify the
forward-looking statements, the underlying assumptions, and the
risks, uncertainties and other factors that could cause actual
results or events to differ materially from those expressed or
implied in the forward-looking statements, there may be other
factors that cause actual results or events to differ from those
expressed or implied in the forward-looking statements. In addition
to the forward-looking statements and associated risks set out in
this news release, investors and shareholders are strongly advised
to refer to the additional assumptions and risks set out in the
section entitled "CAUTION REGARDING FORWARD-LOOKING STATEMENTS" in
the Company's Directors' Circular dated September 5, 2006,
available free of charge at http://www.sedar.com/ or from AnorMED's
Secretary. We undertake no obligation to revise or update any
forward-looking statements as a result of new information, future
events or otherwise, after the date hereof, except as may be
required by law. CONTACT: Company Contact: Kenneth Galbraith,
Chairman and Interim CEO, Tel: (604) 889-5320; or Kim Nelson,
Ph.D., Manager, Investor Relations, Tel: (604) 532-4654, Cell:
(604) 614-2886, Email: ; Media Contact: Karen Cook, James Hoggan
& Associates, Tel: (604) 739-7500, Email: DATASOURCE: AnorMED
Inc. CONTACT: Company Contact: Kenneth Galbraith, Chairman and
Interim CEO, Tel: (604) 889-5320; or Kim Nelson, Ph.D., Manager,
Investor Relations, Tel: (604) 532-4654, Cell: (604) 614-2886,
Email: ; Media Contact: Karen Cook, James Hoggan & Associates,
Tel: (604) 739-7500, Email:
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