OVERLAND PARK, Kan.,
July 24, 2014 /PRNewswire/
-- Parnell Pharmaceuticals Holdings Ltd announces the
successful licensing of two compounds that will be added to
Parnell's already extensive pipeline through a license agreement
with Australian-based CIMTECH Pty Ltd, a biotechnology company. The
compounds now known as PAR 121 and PAR 122 have shown promise in
bone regeneration and dermal regeneration, respectively. Parnell
has received a license to develop the compounds for the veterinary
market with the potential to also seek human drug approvals.
"We are excited to have completed this deal with CIMTECH which
we feel supports our proposition that we can quickly and
efficiently develop veterinary drugs due to our demonstrated
competencies across the entire pharmaceutical value chain," says
Robert Joseph, President and CEO.
"This deal is consistent with our vision to discover, develop and
deliver the best animal health solutions, and we look forward to
many more licensing deals in the future."
Prior to licensing the compounds to Parnell, CIMTECH had
undertaken pre-clinical studies for PAR121 that demonstrated a
rapid formation of bone matrix in a rabbit ulna critical defect
model. Compared to control subjects that did not heal,
PAR121-treated subjects achieved new bone in-growth in just one
week, and in bone grafting achieved new bone growth and remodeling
in 6 weeks that would typically take 12 weeks. If Parnell is
successful in developing PAR121 into a marketable drug, the
financial implications could be significant; in the USA each year, over $1.5 billion is spent on canine knee surgeries
alone. The ability to utilize a product that rapidly improves the
speed of bone healing could be very significant.
Pre-clinical studies into PAR122 showed similarly impressive
outcomes with a rapid and significant thickening of the epidermis
in treated subjects and an improvement in acute wound healing. A
drug developed with the PAR122 compound could be used to rapidly
repair skin and therefore may be useful in treating conditions such
as atopic dermatitis, a very common condition in dogs, typically
caused by flea allergy.
CEO & President Robert Joseph
said that if successfully developed, both compounds may become
blockbuster products given there is nothing else like them in the
veterinary market. They could also potentially be developed for
human use.
The licenses is perpetual and exclusive and provides Parnell
worldwide rights to market any resulting veterinary and/or human
drugs as well as a right to sub-license to third parties. In order
to retain the licence Parnell must continue to undertake
development of the compounds each year and will bear all costs of;
drug development, intellectual property, drug approvals and
commercialization. Parnell will pay $100,000 as an upfront payment to CIMTECH and up
to a further $1.9 million in
milestone payments plus a single digit royalty on all Net Revenues
received by Parnell from all drug sales (veterinary and human).
About Parnell
Parnell (NASDAQ: PARN) is a fully integrated pharmaceutical
company focused on developing, manufacturing and commercializing
innovative animal health solutions. Parnell currently markets five
products for companion animals and production animals in 14
countries and augments its pharmaceutical products with proprietary
software platforms - iKAM and mySYNCH. These innovative technology
solutions are designed to enhance the quality of life or
performance of animals, while driving customers' operational
efficiency and profitability. Parnell believes its value-added
solutions help establish them as a business partner with customers
rather than only as a commodity provider, differentiating them from
competitors.
For more information on the Company and its products, please
visit www.parnell.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements and
information within the meaning of the U.S. Private Securities
Reform Act of 1995. Words such as "may," "anticipate," "estimate,"
"expects," "projects," "intends," "plans," "develops," "believes,"
and words and terms of similar substance used in connection with
any discussion of future operating or financial performance
identify forward-looking statements. Forward-looking statements
represent management's present judgment regarding future events and
are subject to a number of risk and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. These risks include, but are not
limited to, risks and uncertainties regarding Parnell's research
and development activities, its ability to conduct clinical trials
of product candidates and the results of such trials, as well as
risks and uncertainties relating to litigation, government
regulation, economic conditions, markets, products, competition,
intellectual property, services and prices, key employees, future
capital needs, dependence on third parties, and other factors,
including those described in Parnell's Form F-1 Registration
Statement effective June 18, 2014. In
light of these assumptions, risks, and uncertainties, the results
and events discussed in the forward-looking statements contained in
this press release might not occur. Investors are cautioned not to
place undue reliance on the forward-looking statements, which speak
only as of the date of this press release. Parnell is under no
obligation, and expressly disclaims any obligation, to update or
alter any forward-looking statements, whether as a result of new
information, future events, or otherwise.
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SOURCE Parnell Pharmaceuticals Holdings