RENO, Nev.--(EON: Enhanced Online News)--Update Pharma Inc. has announced today it has entered into a binding term sheet for a merger with Resolute Oncology, Inc. (REON). Under the agreed upon terms, Update will merge with REON and will own 70% of the surviving entity. Update will appoint 3 board members and REON will appoint two. Following the completion of diligence, and the resolution of certain conditions specified as terms, a definitive agreement between the parties will consummate the merger.
“Update and Resolute are a natural fit for each other”
The combined entity, doing business under the name of Resolute Oncology Inc., will be comprised of a proprietary drug development capability initially dedicated to the development of its lead compound UPI-928 for the treatment of acute myeloid leukemia, recurrent breast cancer, and other indications as in addition to a specialty oncology pharma company that is currently selling products in the private oncology market in Europe. REON brings experience in the execution of a named patient program, and the combined entity will initiate a named patient program for UPI-928.
“Update and Resolute are a natural fit for each other,” said Dr. John Rothman, CEO of Update Pharma. “Resolute provides revenues, access to the European oncology community, the ability to execute a named patient program, and other attributes that are useful to Update, and Update provides Resolute with a drug development capability that includes a proprietary agent in development that has demonstrated good tolerability and clinical activity in an extensive body of literature, and the ability for its clients to participate in the drug development process.”
Additional details will be discussed at the Rodman and Renshaw Investor Conference at the Millennium Hotel in New York City on Tuesday, September 10th at 3:15 PM in room 7-03.
About Update Pharma Inc.:
Update Pharma Inc. is developing UPI-928, an agent developed in the 1980’s by Lederle Laboratories in 44 phase 1, 2 and 3 clinical trials, including 33 clinical trials at the National Cancer Institute. Despite an acceptable safety database of over 2,000 treated patients, over 70 peer reviewed clinical publications that demonstrated efficacy in leukemia, lymphoma breast and ovarian cancers and a marketing approval in France for the treatment of acute myeloid leukemia (AML), UPI-928 was never marketed.
Update has filed new intellectual property on UPI-928 and intends to use existing regulatory mechanisms to accelerate the development process based upon the extensive body of historical data.
Resolute Oncology Inc. (REON)
Resolute Oncology is a specialty pharmaceutical company that has been recently formed to sell oncology drugs to the private market in Europe. Currently REON has introduced two agents in Germany that generate revenue, with two additional agents to be launched in 2013 and a fifth agent to be launched in 2014. Additionally, REON intends to bid on public tenders in the UK, France and Germany in 2014.
Certain statements in this Press Release are "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements are based on our current expectations and beliefs and are subject to a number of risk factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Such risks and uncertainties include the risk for the Company to complete its development work, as well as the risks inherent in commercializing a new product (including technology risks, market risks, financial risks and implementation risks, and other risks and uncertainties affecting the Company), as well as other risks that have been disclosed by us and are customarily disclosed in SEC filings of publicly traded pharmaceutical companies. We disclaim any intention or obligation to revise any forward-looking statements, including, without limitation, financial estimates, whether as a result of new information, future events, or otherwise.