Prometic obtains controlling stake in Pathogen Removal and Diagnostic Technologies Inc.
Non Cash Transaction results in ProMetic increasing its holding of common stock from 26% to 77%
ProMetic Life Sciences Inc. announced that it has finalized its intended transaction with the American Red Cross (ARC) to acquire, in a non-cash transaction, its common stock holding in Pathogen Removal and Diagnostic Technologies Inc. (PRDT). The transaction, originally announced in April 2008, will see ProMetic’s participation in the common stock increase from 26% to a controlling 77% in Exchange for a tapering royalty on PRDT revenue. The remaining 23% of common stock in PRDT will continue to be held by the academic co-founders and ARC will continue to be represented on the Board of Directors.
PRDT’s technology forms the basis of proven prion capture materials used in both industrial purification processes and in the P-Capt® prion removal filters for red blood cell filtration that significantly reduce the risk of transmission of the fatal brain disease variant Creutzfeldt-Jakob disease (“vCJD”) from blood derived products.
“PRDT’s prion reduction technology has seen increasing levels of commercial success recently. We are particularly pleased with the strengthening relationship between ProMetic and Octapharma, and are encouraged by the growing level of interest in the technology by other players in the market,” commented Mr. Pierre Laurin, President and Chief Executive Officer of ProMetic who added: “This increased level of use for bulk-scale applications, combined with the anticipated adoption of the P-Capt® filter, should result in further growth in revenues. In view of the increasing commercialization of PRDT’s technology it is appropriate that control of PRDT moves from ARC to ProMetic. We do however look forward to a continued long-term collaboration with ARC”.
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