ARTICLE | Company News

Isotechnika, Paladin, ILJIN deal

November 22, 2010 8:00 AM UTC

Isotechnika granted ILJIN's ILJIN Life Science Co. Ltd. subsidiary exclusive rights to develop and commercialize voclosporin for transplant and autoimmune indications in the U.S. and territories outside of Europe, Canada, Israel, South Africa, China and Taiwan. Voclosporin, a transisomer of a cyclosporine analog that inhibits calcineurin, has completed Phase IIb testing to prevent kidney rejection following transplant. Isotechnika will receive $5 million up front and ILJIN will purchase 90.7 million shares for $19.9 million over three tranches beginning 30 days after the close of the deal and ending on or before the second anniversary of closing. Isotechnika is responsible for running a Phase III trial in about 575 kidney transplant patients, which is expected to begin in mid-2011. ILJIN also will be able to nominate two directors to Isotechnika's board. Isotechnika said it will seek shareholder approval of the deal at a Dec. 15 meeting.

In conjunction with the deal, marketing partner Paladin Labs will return all rights to voclosporin in Mexico and Central and South America to Isotechnika and sell 12.5 million shares of Isotechnika stock to ILJIN at C$0.25 per share, or about C$3.1 million (US$3.1 million). Paladin will also return all IP and patents rights to Isotechnika outside of those territories. Paladin supplies Isotechnika with voclosporin and will retain rights to commercialize voclosporin in Canada, Israel and South Africa. ...