TORONTO, Aug. 1 /CNW/ - IntelliPharmaCeutics Ltd. today announced that Par Pharmaceutical (NYSE: PRX) has made a significant equity investment in the Company. IntelliPharmaCeutics Ltd., through its operating company, IntelliPharmaCeutics Corp., develops, licenses and markets both new and generic controlled-release pharmaceutical products. Par Pharmaceutical is a major developer and distributor of generic and branded drugs in the U.S. market.
Under the terms of the investment, Par Pharmaceutical will acquire a 4.2% equity interest in IntelliPharmaCeutics, on terms typical for an investment of this sort and magnitude. The funds will be used by IntelliPharmaCeutics Corp. for general corporate and working capital purposes.
IntelliPharmaCeutics Corp. today also announced that it has signed a drug development collaboration with Par Pharmaceutical. Under the arrangement, IntelliPharmaCeutics will apply its proprietary technology to the formulation and development of four generic drug products (ANDA's) which are bioequivalent to significant branded drugs with substantial commercial sales in the United States. The terms of the deal provide that Par will be responsible for certain costs of development, and that IntelliPharmaCeutics will receive substantial milestone, incentive and success-based payments, together with a share of the profits of commercialization. Par will be responsible for the distribution of the drugs in the United States. These four new collaborations bring the total of drugs under development with Par to six, and represent the continuation and solidification of a very strong commercial relationship between the companies.
Dr. Isa Odidi, CEO and Co-Chief Scientific Officer of IntelliPharmaCeutics, expressed his deep satisfaction with the expanding relationship: "We are very pleased that Par believes enough in the present value and future prospects of the Company that they are prepared to make an equity investment of this magnitude and we are proud to have such a significant drug developer and distributor as Par as a collaboration partner. We view the completion of these new deals as a strong endorsement of our proprietary technologies, of our ability to apply them to a range of small drug molecules and of our willingness to engage in dynamic, cooperative and productive relationships with our development partners. We are confident that we will be able to leverage these investment proceeds to substantially advance our exciting internal pipeline products. These new products, and the next-level technologies they will utilize, could provide the impetus to propel the Company to the next level."