MONTREAL, CANADA--(Marketwire - Nov 19, 2012) - Paladin Labs Inc. (PLB.TO) ("Paladin") today announced that it has initiated the launch of commercial operations in Latin America with an agreement to acquire a controlling stake in Ativa Pharma S.A, a start-up specialty pharmaceutical company headquartered in Guadalajara, Mexico. Paladin''s acquisition of a controlling stake in Ativa is subject to the clearance of certain closing conditions.
The benefit of this acquisition to Paladin is the onboarding of an established infrastructure and network that provides the necessary licenses and permits to import, distribute and promote pharmaceuticals in the Mexican market, together with an existing team with commercial and regulatory expertise based in Mexico. Further details and financial terms of this arrangement were not disclosed. Following the closing of this transaction, Ativa will change its name to incorporate the Paladin name and branding.
Paladin will focus its activities initially on the registration of various assets assembled through recent business development activities. These include:
- Abstral® for breakthrough cancer pain
- Sancuso™ for chemotherapy-induced nausea and vomiting
- Tostran™ for hypogonadism
- Rectogesic® for the treatment of anal fissures
- AL-Sense™ for amniotic fluid leakage detection
- VL-Sense™ for the detection of bacterial vaginosis
- Travelan® for the prevention of traveller''s diarrhea.
In addition to these products sourced from Paladin, the company will also work to seek approval for and launch Ativa''s existing portfolio of pipeline products. Current expectations are that the first regulatory approvals and commercial launches will occur in the second half of 2013.
"The start of operations in Mexico represents an exciting milestone in the evolution of Paladin," said Mark Beaudet, interim President and Chief Executive Officer of Paladin Labs Inc. "We are keen to begin deriving value from our existing Latin American assets and to continue to add to this base through our ongoing business development efforts."
With a population of over 110 million people and a policy focus from government to improve healthcare, the Mexican market represents an attractive short and long term growth opportunity for Paladin. According to data from IMS Health that tracked retail channel sales for the 12 months ended June 2012, the Mexican retail market for pharmaceuticals was valued at USD $8.1 billion, ranking it as the #11 market globally.
About Paladin Labs Inc.
Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian and world markets. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada''s leading specialty pharmaceutical companies. Paladin''s shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company''s web site at www.paladinlabs.com.
This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company''s Annual Information Form for the year ended December 31, 2011. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company''s ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at www.sedar.com.