VANCOUVER,
March 28, 2013 /CNW/ - Welichem
Biotech Inc. ("Welichem" or the "Company") (TSXV:WBI)
announced today that it has entered into an asset purchase
agreement (the "APA") to purchase the exclusive development
and commercialization rights (the "Rights") to the novel
anti-inflammatory agent, WBI-1001, in China, Taiwan, Macao
and Hong Kong from Shenzhen
Celestial Pharmaceuticals Ltd. and Beijing Wenfeng Tianji
Pharmaceuticals Co., Ltd. (together, the "Vendors").
Upon entering into the APA, Welichem paid the sum of Cdn$10 million (the "Signing Payment") to
the Vendors, which sum has been held in escrow since the previously
disclosed closing of Welichem's sale to Stiefel, a GSK company, of
the exclusive development and commercialization rights to WBI-1001
outside of China, Taiwan, Macao
and Hong Kong, on July 31, 2012. Completion of the sale of
the Rights under the APA remains subject to certain third party and
Chinese regulatory approvals, including but not limited to Ministry
of Health of the People's Republic of
China.
Pursuant to Wellichem's the purchase and sale
agreement with Stiefel, (the "Stiefel Agreement"), Stiefel
also received a conditional right to acquire the exclusive rights
to develop and commercialize WBI-1001 in China, Taiwan, Macao
and Hong Kong at a future date,
upon satisfaction of certain conditions, including the acquisition
of such Rights by Welichem, and upon making an additional payment
to Welichem of Cdn$15 million.
The transactions contemplated under the Stiefel
Agreement, including the purchase of the Rights from the Vendors
and the payment of the Signing Payment, was previously approved by
the shareholders of Welichem at a special meeting held on
July 5, 2012.
About WBI-1001: WBI-1001 is a novel,
non-steroidal, topical anti-inflammatory new chemical entity (NCE)
agent that has demonstrated efficacy and safety in Ph1 and Ph2
clinical trials for the treatment of mild to moderate psoriasis and
moderate to severe atopic dermatitis (AD) for up to 12 weeks as a
single therapy.
About Welichem Biotech Inc.
Welichem Biotech Inc. is a publicly-traded
biotechnology company developing therapeutic drugs in the fields of
autoimmune diseases and cancers. For a more complete business
and financial profile of the Company, interested parties are
encouraged to visit the Company's website at www.welichem.com.
The TSX Venture Exchange has not reviewed and
does not accept responsibility for the adequacy or accuracy of the
content of this news release. This press release contains
forward-looking statements that include our belief as to the
potential of our products. Certain risks and uncertainties such as
our ability to successfully commercialize the products could cause
the Company's actual results to differ materially from those in the
forward-looking statements.
SOURCE Welichem Biotech Inc.