Calgary, Alberta, Canada
January 6, 2009
SemBioSys Genetics Inc. (TSX:SBS), a biotechnology company
developing protein pharmaceuticals in crop plants, today
announced it has received US$2,500,000 from MannKind Corporation
(Nasdaq:MNKD) as consideration for the option agreement and
issuance of 2,400,000 units of SemBioSys, as previously
announced December 24, 2008. The transaction provides MannKind
with the option to the license rights to SemBioSys' proprietary
plant-produced recombinant human insulin for use primarily in
MannKind's ultra-rapid acting insulin, AFRESA™.
The units were issued at a price US$0.83 (Cdn$1.00) per unit.
Each unit issued by SemBioSys consists of one common share of
SemBioSys and one-tenth of one common share purchase warrant of
SemBioSys. Each whole warrant entitles MannKind to purchase one
additional common share of SemBioSys at an exercise price of
Cdn$6.00 for a period of 36 months from the effective date of
the option. The option period for the license rights ends on
March 31, 2009.
About SBS Plant-Produced Insulin
SemBioSys' plant-produced insulin is human insulin produced from
genetically enhanced safflower. SemBioSys has demonstrated that
its plant-produced insulin is physically, structurally and
functionally indistinguishable from pharmaceutical-grade human
insulin through analytical testing and pre-clinical sub-chronic
toxicology studies in rodents and primates. SemBioSys is
currently conducting a Phase I/II clinical trial of its
plant-produced insulin. The three-arm study, of up to 30 healthy
volunteers, is designed to demonstrate the bioequivalence of
safflower-produced insulin to two commercial insulin standards.
Full results are expected to be available
during the first half of 2009.
Calgary, Alberta-based SemBioSys is a biotechnology company
developing protein-based pharmaceuticals using its proprietary
protein production technology. This technology enables the
production of therapeutic proteins in
plant seeds by genetically enhancing the safflower plant.
SemBioSys' lead pharmaceutical candidates are recombinant human
insulin, which is intended to serve the rapidly expanding global
diabetes market, and Apo AI(Milano). Apo AI(Milano) is a variant
of Apo AI, the major protein associated with high density
lipoprotein (HDL), or "good cholesterol", whose function is to
remove excess cholesterol from arteries. In addition to its
pharmaceutical products, SemBioSys' subsidiary, Botaneco
Specialty Ingredients Inc., is selling oleosome-based all
natural products in the global personal care ingredient market.
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