InNexus Biotechnology Announces New EGFR Antibody DXL1218 Targeting Colorectal Cancer and Announces $1.25 Million Private Placem
November 07 2008 - 7:25AM
PR Newswire (US)
- Innovative Biotech Targets Another Large Well-Known Product and
Continues Expansion of Antibody Therapeutics Pipeline - BRITISH
COLUMBIA, Canada, Nov. 7 /PRNewswire-FirstCall/ -- InNexus
Biotechnology Inc., (OTC Bulletin Board: IXSBF; TSX Venture: IXS;
http://www.ixsbio.com/), a drug development company commercializing
the next generation of monoclonal antibodies based on its Dynamic
Cross Linking (DXL(TM)) technology, announces the development of a
new antibody product from its DXL(TM) platform technology, DXL1218
(EGFR), for the prospective treatment of colorectal cancer. "Recent
experimental data suggests that DXL1218 (EGFR) is superior to
competing commercialized products on the market, such as ERBITUX(R)
(cetuximab), in terms of potency and efficacy," said Jeff Morhet,
CEO and Chairman of InNexus. "I am very excited, as this latest
development lends further support to the robustness and
predictability of the DXL(TM) platform and the superiority of
products from the platform over presently commercialized
offerings." Speaking on InNexus' announcement, Pablo Legorreta,
Chief Executive Officer of Royalty Pharma said, "We are quite
pleased with the rapid progress of our research partner InNexus.
Jeff has had a vision for rapid product development based on
DXL(TM) technology coupled with advanced in vivo studies and a
significant regulatory strategy. We look forward to their continued
rollout of products and performance." Private Placement InNexus
also announces it intends to issue 10% unsecured convertible
debentures, for maximum proceeds to InNexus of $1.25 million. Each
debenture will be convertible into common shares of InNexus at the
rate of one common share for each $0.10 of debt converted. The
debenture will have a term of 2 years and net proceeds from the
private placement will be used by InNexus for research and
development and general corporate business. Closing of the private
placement is expected to occur on or about 14 November 2008. In
connection with the private placement, certain insiders of InNexus
comprised of some members of the Board and senior management, are
expected to participate in the offering for an aggregate of
approximately 40% on the same terms and InNexus may pay finders'
fees to registered persons in an amount equal to 7% of the proceeds
from the sale of the debentures to purchasers referred by such
finder in accordance with the policies of the TSX Venture Exchange.
Participation in the private placement by insiders of InNexus is
considered to be a related-party transaction as defined under
Multilateral Instrument 61-101, however, the transaction is exempt
from the formal valuation and minority shareholder approval
requirements under the instrument as neither the fair market value
of the securities being issued nor the consideration paid exceeds
25 per cent of InNexus' market capitalization. Upon conversion of
the debenture, the common shares will be subject to a four-month
"hold period" from the date of conversion under the policies of the
TSX Venture Exchange and applicable securities legislation. About
Colorectal Cancer Colorectal cancer is the third most common cancer
found in men and women in the United States and is a term referring
to cancer that develops in the colon or rectum. The American Cancer
Society estimates that there will be about 108,070 new cases of
colon cancer and 40,740 new cases of rectal cancer in 2008 in the
United States. Combined, they will cause about 49,960 deaths. One
of the leading products available is ERBITUX(R) (cetuximab)
marketed by ImClone Systems Incorporated. ImClone recently reported
that global net sales of ERBITUX(R) for the first quarter of 2008
grew to $417.3 million, an increase of 12% compared to $371.0
million for the previous quarter and an increase of 36% compared to
$306.1 million for the same period last year. About InNexus InNexus
is a drug development company commercializing the next generation
of monoclonal antibodies based on its DXL(TM) technology, which
improves the potency of existing antibody products while opening
new markets and disease applications. DXL(TM) antibodies utilize
unique, novel and patented methods and technologies of InNexus.
InNexus is headquartered in British Columbia with principal
management based in Scottsdale, Arizona on the campus of Mayo
Clinic and has its own in-house developmental facilities. These
development resources provide validation of protein and peptide
discoveries, enabling InNexus (and its strategic partners) to
advance novel drug therapeutics and diagnostics. To learn more
about InNexus, please visit http://www.ixsbio.com/. The TSX Venture
Exchange has not reviewed and does not accept responsibility for
the adequacy or accuracy of this news release. This news release
may contain assumptions, estimates, and other forward-looking
statements that involve inherent risks and uncertainties and are
subject to factors, many of which are beyond the Company's control,
that may cause actual results or performance to differ materially
from those currently anticipated in such statements. DATASOURCE:
InNexus Biotechnology Inc. CONTACT: Jeff Morhet, Chairman &
Chief Executive Officer, InNexus Biotechnology Inc.,
+1-480-862-7500 Web site: http://www.ixsbio.com/
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