Joint Venture to Develop Cancer Treatment

On April 27, 2001, Inex Pharmaceuticals Corporation and Elan Corporation, plc formed a joint venture company for the development and commercialization of Inex’s lead product, Onco TCS. Onco TCS is a cancer therapy composed of the widely used cancer drug vincristine encapsulated in the company’s TCS (liposomal) drug delivery technology. The TCS technology provides prolonged blood circulation, tumour accumulation and extended drug release at the cancer site. Onco TCS is now being evaluated as treatment for non-Hodgkin’s lymphoma, small cell lung cancer, and leukemia in children and adolescents.

Inex and Elan both contributed assets to the joint venture company, which is incorporated in Barbados, including worldwide rights to Onco TCS and complementary intellectual property. Inex can receive from Elan up to $60 million in funding related to the joint venture and an upfront $7.5 million purchase of Inex common shares. Inex and Elan will share equally in the profits earned from the commercialization of Onco TCS.

Inex was represented by Leo Raffin (corporate and securities), Richard Bennett (tax), John Morrison (banking) and Jeff Sheremeta (corporate) of the Vancouver office of Lang Michener. Hugh Gillespie of Appleby Spurling & Kempe, Bermuda, also advised Inex. Acting for Elan on corporate matters was John Watkins and Kim Lefkowitz of Reitler Brown LLC, New York, and on intellectual property matters by Michael Slapo of Cohen Tauber Spievack & Wagner LLP of New York.