SAN DIEGO, April 13, 2015 /PRNewswire/ -- Taxus Cardium
Pharmaceuticals Group Inc. (trading symbol: CRXM) today announced
that it has entered into a binding term sheet with Shenzhen Qianhai
Taxus Industry Capital Management Co., Ltd ("Shenzhen Qianhai
Taxus"), as lead investor, to purchase an equity stake in
Angionetics Inc., a newly-formed subsidiary of Taxus Cardium, that
is focused on the Phase 3 clinical development and
commercialization of Generx® [Ad5FGF-4], an angiogenic gene therapy
product candidate for the treatment of refractory angina and
myocardial ischemia due to cardiac microvascular
insufficiency.
Under the terms of the agreement, Shenzhen Qianhai Taxus has
agreed to acquire 15% of Angionetics' outstanding common stock for
an aggregate purchase price of $3,000,000, payable in three tranches to be
completed by May 30, 2015. On
completion of the purchase, Taxus Cardium has agreed to grant
Shenzhen Qianhai Taxus a right of first negotiation for exclusive
license agreements for certain Asian markets to fund local country
registrations, market and sell the Generx® product candidate,
Excellagen®, an FDA-cleared dermal matrix product for advanced
wound healing and a delivery platform for biologics and stem cells,
and LifeAgain®, an advanced medical data analytics product
technology platform. The agreement contemplates that this
initial funding is a bridge equity investment to a separate larger
financing to be conducted by Angionetics Inc., including a
potential registration and public offering of securities. The
terms provide for Taxus Cardium to gross up Shenzhen Qianhai Taxus'
shares to equate to a 15% interest in Angionetics following any
such public offering. It also provides for certain
registration rights for the shares purchased by Shenzhen Qianhai
Taxus.
Shenzhen Qianhai Taxus is an affiliate of Shanxi Taxus
Pharmaceuticals Co., Ltd. which holds approximately 25% of
Cardium's outstanding common stock (fully diluted) as a result of a
Stock Purchase Agreement dated February
21, 2014.
The proceeds from this Angionetics equity investment will be
used to advance the international and United States Phase 3
clinical studies of Generx, for working capital, and transactional
expenses to facilitate current plans to advance Angionetics forward
as an independent company with direct access to capital markets and
strategic partnerships.
Last week, the Company and Angionetics announced an exclusive
territorial license agreement with Dr. Reddy's Laboratories
covering the co-development, marketing and sales of Generx in
certain international markets including the Russian Federation and the Commonwealth of
Independent States. Positive safety and efficacy findings from the
Company's Generx international Phase 3, Russia-based ASPIRE study were announced at
the Annual 2014 Biotechnology Industry Organization Conference
following completion of a protocol-specified interim data
analysis. Dr. Reddy's Laboratories operates across the
globe. Major markets include the
United States, India and
Russia.
"We believe that there is significant value in Generx, based on
the recognition of a growing body of safety and efficacy data from
the clinical development of multiple gene therapy clinical studies
now progressing forward worldwide, and the strategic valuations
being placed on DNA-based biologic product candidates," said
Chris Reinhard, Chief Executive
Officer of Taxus Cardium. "The arrangement with Dr. Reddy's
Laboratories is designed to provide market presence and additional
resources to facilitate the completion of the international Phase 3
clinical trial for Generx, and undertake a Phase 4 clinical study
for market expansion. Establishing Angionetics Inc. as a
separate entity will facilitate the direct investment needed to
advance the commercialization of Generx, benefitting Taxus Cardium
and its shareholders."
The agreement with Dr. Reddy's Laboratories grants it rights to
market and sell Generx, following regulatory approval, in
Russia, Commonwealth of
Independent States, and certain other countries, and provides
certain rights for Latin America. Under the arrangement with
Shenzhen Qianhai Taxus, Angionetics will grant a right of first
negotiation for the rights to co-develop, market and sell Generx in
Greater China, Japan and Korea. Angionetics Inc.
retains the rights to market and sell the Generx product candidate
in North America, Europe, the Middle
East and Africa.
About Shenzhen Qianhai Taxus Industry Capital
Management Co., Ltd
Shenzhen Qianhai Taxus Industry Capital
Management Co., Ltd is a China-based operating company and investment
fund seeking to acquire next generation medical technology and
biotechnology products to commercialize for China and Asian markets. Through its
San Diego, California U.S.-based
operations, Shenzhen Qianhai Taxus seeks to leverage its private
equity capital access and acquire equity positions in undervalued
U.S.-based small and micro-cap public companies and secure
exclusive co-development, distribution, marketing and sales rights
for new and innovative products for Asian and other international
markets.
About Angionetics Inc.
Angionetics Inc., a subsidiary
of Taxus Cardium Pharmaceuticals Group, is focused on the
development and commercialization of novel DNA-based therapeutics
designed to promote the heart's innate natural capacity to modulate
the formation and growth of cardiac microvascular circulation to
enhance blood flow (perfusion) in patients with a variety of
ischemia-driven disease conditions and refractory angina and
myocardial ischemia due to cardiac microvascular insufficiency
(CMI), and other cardiovascular disease conditions. For more
information, visit www.angionetics.com.
Angionetics' lead Phase 3 product candidate, Generx®
(alferminogene tadenovec [Ad5FGF-4]), is a first in class,
single-dose, disease altering therapeutic specifically targeted to
the cardiac micro-vasculature. Generx is designed to stimulate and
augment the formation of new biologic structures that increase the
coronary microvascular network, to enhance cardiac perfusion, and
improve cardiac performance, as measured by exercise tolerance and
the occurrence and severity of myocardial ischemia-driven angina.
Current therapies for patients with CMI are limited to
pharmacologic anti-anginal medications to relieve angina chest
pain, which are dosed daily or episodically and can cause adverse
side effects, and surgical and percutaneous interventions that
address large vessel coronary artery disease. Angionetics'
product candidates are designed to easily fit within the current
practice of medicine, as single-dose treatments, which are
administered by interventional cardiologists using standard cardiac
catheters, during an approximately one-hour, out-patient,
angiogram-like procedure which is conducted in a hospital or
medical center.
For more information about Taxus Cardium, visit the Company's
website site www.cardiumthx.com.
Forward-Looking Statements
Except for statements of
historical fact, the matters discussed in this press release are
forward looking and reflect numerous assumptions and involve a
variety of risks and uncertainties, many of which are beyond our
control and may cause actual results to differ materially from
expectations. For example, there can be no assurance that Shenzhen
Qianhai Taxus will complete the funding as contemplated by the term
sheet, that Angionetics Inc. will successfully complete a financing
or strategic transaction that will enable it to complete its Phase
3 clinical trial, that the Company will complete a final agreement
with Dr. Reddy's Laboratories with respect to a final territorial
license to market and sell Generx, based on the binding term sheet
as reported previously, and that results or trends observed in any
one clinical study or procedure will be reproduced in subsequent
studies or in actual use; that current or new clinical studies will
be successful or will lead to approvals or clearances from health
regulatory authorities, or that approvals in one jurisdiction will
help to support studies or approvals elsewhere; that the company
can attract suitable commercialization partners for our products or
that we or partners can successfully commercialize them; that our
product or product candidates will not be unfavorably compared to
competitive products that may be regarded as safer, more effective,
easier to use or less expensive or blocked by third party
proprietary rights or other means; that the products and product
candidates referred to in this report or in our other reports will
be successfully commercialized and their use reimbursed, or will
enhance our market value; that new product opportunities or
commercialization efforts will be successfully established; that
third parties on whom we depend will perform as anticipated; that
we can raise sufficient capital from partnering, monetization or
other fundraising transactions to adequately fund ongoing
operations; or that we will not be adversely affected by these or
other risks and uncertainties that could impact our operations,
business or other matters, as described in more detail in our
filings with the Securities and Exchange Commission. We undertake
no obligation to release publicly the results of any revisions to
these forward-looking statements to reflect events or circumstances
arising after the date hereof.
Copyright 2015 Taxus Cardium Pharmaceuticals Group Inc.
All rights reserved.
For Terms of Use Privacy Policy,
please visit www.cardiumthx.com.
Cardium Therapeutics®,
Generx®, Cardionovo®, Tissue Repair™,
Excellagen®, Excellarate™, Genedexa™, and LifeAgain™,
are trademarks of Cardium Therapeutics, Inc., Tissue Repair Company
or LifeAgain Insurance Solutions Inc. Other trademarks belong to
their respective owners.
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SOURCE Taxus Cardium (CRXM)
