MONTREAL, CANADA–(Marketwired – Jun 4, 2015) – Knight Therapeutics Inc. (TSX:GUD) (“Knight” or the “Company”), a leading Canadian specialty pharmaceutical company, announced the closing of two product transactions.
1. Knight secures its first Canadian product with modest existing sales
Today, Knight acquired the assets related to Neuragen®, an innovative OTC product that helps relieve pain caused by diabetic nerve damage, pursuant to an order of The Supreme Court of Nova Scotia following default by Origin BioMed Inc. under its secured loan agreement with Knight.
Currently available in retail locations across North America, Neuragen® is the first all-natural, non-prescription topical treatment for rapid relief of pain associated with diabetic and peripheral neuropathy, approved for sale in Canada and the U.S.
“Neuragen® is our first commercial product in Canada,” said Jonathan Ross Goodman, President and CEO of Knight. “We are now doing what we do best, commercializing innovative over-the-counter and prescription products that improve the health of Canadians.”
2. A Profound Transaction for Knight
In addition, Knight (1) extended a secured loan of $4.0 million to a wholly-owned subsidiary of Profound Medical Corp. (TSX VENTURE:PRN) (“Profound”) and (2) entered into an exclusive Canadian license agreement with Profound for its new, patented, minimally invasive treatment for localized prostate cancer. As an expression of confidence and in the spirit of partnership, Knight has also purchased $2.0 million of equity in Profound. Jonathan Ross Goodman will further assist Profound as a Profound Director.
The secured loan of $4.0 million bears interest at 15.0% per annum for the initial term of 4 years. As part of the transaction, Knight has been issued 1,717,450 common shares in the capital of Profound, representing approximately 4.0% of the fully diluted capital of Profound, plus other consideration. Together with the 1,333,400 common shares in the capital of Profound issued to Knight in consideration for its $2.0 million investment, Knight holds 3,050,850 common shares in the capital of Profound, representing approximately 7.1% of its fully diluted capital.
As part of the license agreement, Knight obtained the exclusive Canadian sales and distribution rights to Profound’s TULSA-PRO system, an investigational phase device that uses a real-time, MRI guided transurethral ultrasound procedure to ablate prostate tissue, which is currently being assessed in clinical trials, for an initial ten year term.
“Knight is profoundly devoted to pioneering a paradigm shift to this safe, fast and accurate treatment for prostate cancer,” said Jonathan Ross Goodman. “Our willingness to be an equity investor in Profound is an endorsement of both Profound’s management team and promising technology.”
Neuragen® is a topical product that works directly at the site of the pain as opposed to oral products. Neuragen® reduces the spontaneous firing of damaged peripheral nerves. By calming these firings at the source, Neuragen® is clinically shown to reduce shooting and burning pains quickly and without the side effects of orally taken medications. This is in part due to the small lipophilic molecules found in Neuragen® which rapidly carry the active ingredients through the rough outer layer of the skin to the site of the pain. Neuragen is available over the counter in most local pharmacies either in the diabetic section or the analgesic (pain) section. In 2014, Neuragen® sold approximately $250,000 in Canada and $750,000 in the U.S. For more information, please visit www.neuragen.ca.
About Profound Medical Corp.
Profound Medical is a medical device company that has developed a unique and minimally invasive treatment to ablate the prostate gland. Profound’s novel technology combines MRI technology with ultrasound thermal energy that is delivered via a transurethral approach. This investigational method of prostate ablative therapy provides highly accurate and precise treatment within the prostate in a short time span, allowing for fast patient recovery. The potential of this technology is currently being assessed in clinical trials. For more information, visit www.profoundmedical.com.
About Knight Therapeutics Inc.
Knight Therapeutics Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and select international markets. Knight’s shares trade on TSX under the symbol GUD. For more information about Knight Therapeutics Inc., please visit the Company’s web site at www.gud-knight.com or www.sedar.com.
This document contains forward-looking statements for the Company and its subsidiaries. These forward looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions the reader that these assumptions regarding future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations are discussed in the Company’s Annual Report and in the Company’s Annual Information Form for the year ended December 31, 2014. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events, except as required by law.