VioQuest Pharmaceuticals Signs Definitive Agreement for Sale Valued Up to $3 Million of Chiral Quest Subsidiary
BASKING RIDGE, N.J., April 17, 2007 /PRNewswire-FirstCall/ -- VioQuest Pharmaceuticals , a New Jersey-based biopharmaceutical company focused on acquiring, developing and commercializing targeted cancer compounds, announced today that it has signed a definitive agreement for the sale of its subsidiary, Chiral Quest, Inc., to Chiral Quest Acquisition Corp. (CQAC), a corporation formed by Chiral Quest's management and others.
Under the terms of the purchase agreement, the sale of Chiral Quest is valued up to $3 million; $1.7 million in cash is expected to be paid to VioQuest Pharmaceuticals upon closing, plus CQAC will assume Chiral Quest's liabilities of up to $1.3 million.
"This transaction represents another key, corporate strategic milestone for 2007, which is to solidify VioQuest as a focused drug development company," said Daniel Greenleaf, VioQuest's president and CEO. "Between the sale of Chiral Quest and the transfer of our net operating losses, VioQuest will have generated approximately $2 million of non-dilutive funding over the past six months. This funding will be used to support our drug development programs."
Dr. Xumu Zhang, Ph.D., Chairman of CQAC, stated, "This is a major step for Chiral Quest. Chiral Quest currently has 30 employees in China and 15 in New Jersey, a very good mix that enables us to maximize our growth capacity as a technology and Chiral products company. We are grateful for the support and guidance of the VioQuest management team." Dr. Zhang is also currently Chief Technology Officer of Chiral Quest, Chairman of Chiral Quest Jiashan and a member of VioQuest's board of directors.
The completion of the transaction is subject to customary closing conditions, including the approval by VioQuest's shareholders. VioQuest anticipates submitting the transaction for shareholder consideration at its May 2007 annual meeting. Assuming shareholder approval is obtained, VioQuest anticipates completing the sale of Chiral Quest in the second quarter of 2007.
VioQuest Pharmaceuticals will continue to focus its business activities on the acquisition, development and commercialization of targeted cancer therapeutics:
-- VioQuest has two targeted cancer therapy compounds in Phase I/IIa clinical trials, VQD-002, a novel inhibitor of activated Akt, which is found disproportionately in resistant and aggressive solid and hematologic tumors and Lenocta (TM), an inhibitor of specific protein tyrosine phosphatases (PTPases) SHP1 and SHP2. -- VioQuest expects to initiate three Phase II trials in the third quarter for VQD-002 and Lenocta (TM). -- VioQuest recently in-licensed another drug candidate, Xyfid (TM), a topical therapy which has shown early clinical promise in the treatment and prevention of chemo-induced hand-foot syndrome, and is anticipated to enter Phase II trials later this year.
About Chiral Quest
Chiral Quest, Inc., www.chiralquest.com a pioneer in asymmetric chemocatalysis and custom synthesis, offers its proprietary technology products to well-known pharmaceutical and fine chemical companies worldwide to improve their production efficiencies and, in some instances, to increase the overall safety and efficacy of the underlying drug.
About VioQuest Pharmaceuticals
VioQuest Pharmaceuticals, Inc. www.vioquestpharm.com focuses on acquiring, developing, and commercializing targeted late preclinical and early clinical stage therapies with unique mechanisms of action for oncology, viral and autoimmune disorders. VioQuest has two targeted therapeutics in Phase I/IIa clinic trials: VQD-002 which inhibits activation of Akt that is seen at abnormally high levels in breast, ovarian, colorectal, pancreatic, and hematologic tumors; and Lenocta (TM), an inhibitor of specific protein tyrosine phosphatases, which has shown compelling preclinical activity in both renal and melanoma cancers. In addition, VioQuest and the U.S. Army are planning to submit an NDA to the FDA in 2007 for Lenocta (TM) for the treatment of leishmaniasis. VioQuest also has recently in-licensed Xyfid (TM), a topical therapy which has shown early clinical promise in the treatment and prevention of chemo-induced hand-foot syndrome.
This press release contains forward-looking statements that involve risks and uncertainties that could cause VioQuest's actual results and experiences to differ materially from the anticipated results and expectations expressed in these forward-looking statements. These statements are often, but not always, made through the use of words or phrases such as anticipates, expects, plans, believes, intends, and similar words or phrases. These statements are based on current expectations, forecasts and assumptions that are subject to risks and uncertainties, which could cause actual outcomes and results to differ materially from these statements. Among other things, there can be no assurances that all of the conditions to closing the sale of Chiral Quest will be satisfied in a timely manner or at all, which may prevent VioQuest from completing the transaction. In addition, this press release also includes forward-looking statements regarding the timing, progress and results of the clinical development, regulatory processes, potential clinical trial initiations, potential IND and NDA filings and commercialization efforts of VioQuest's drug development product candidates. These statements are subject to various risks and uncertainties include the possibility that the results of clinical trials will not support VioQuest's claims, the possibility that VioQuest's development efforts relating to its product candidates, including Lenocta (TM) and VQD-002, will not be successful, the inability to obtain regulatory approval of VioQuest's product candidates, VioQuest's reliance on third-party researchers to develop its product candidates, its lack of experience in developing and commercializing pharmaceutical products, and the possibility that its licenses to develop and commercialize its product candidates may be terminated. Additional risks are described in VioQuest's Annual Report on Form 10-KSB for the year ended December 31, 2006. VioQuest assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Contact information: Daniel Greenleaf Brian Lenz President and CEO Chief Financial Officer 908-766-4400 ext. 115 908-766-4400 ext. firstname.lastname@example.org email@example.com
CONTACT: Daniel Greenleaf, President and CEO, ext. 115, or, or Brian Lenz, Chief Financial Officer,ext. 117, or , +1-908-766-4400, both ofVioQuest Pharmaceuticals firstname.lastname@example.org email@example.com
Web site: http://www.vioquestpharm.com/
Ticker Symbol: (NASDAQ-OTCBB:VQPH)
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Posted: April 2007