VANCOUVER, March 28, 2013 /CNW/ - Welichem Biotech Inc. (" Welichem" or the " Company") (TSXV:WBI) announced today that it has entered into an asset purchase agreement (the " APA") to purchase the exclusive development and commercialization rights (the " Rights") to the novel anti-inflammatory agent, WBI-1001, in China, Taiwan, Macao and Hong Kong from Shenzhen Celestial Pharmaceuticals Ltd. and Beijing Wenfeng Tianji Pharmaceuticals Co., Ltd. (together, the " Vendors"). Upon entering into the APA, Welichem paid the sum of Cdn$10 million (the " Signing Payment") to the Vendors, which sum has been held in escrow since the previously disclosed closing of Welichem's sale to Stiefel, a GSK company, of the exclusive development and commercialization rights to WBI-1001 outside of China, Taiwan, Macao and Hong Kong, on July 31, 2012. Completion of the sale of the Rights under the APA remains subject to certain third party and Chinese regulatory approvals, including but not limited to Ministry of Health of the People's Republic of China.
Pursuant to Wellichem's the purchase and sale agreement with Stiefel, (the " Stiefel Agreement"), Stiefel also received a conditional right to acquire the exclusive rights to develop and commercialize WBI-1001 in China, Taiwan, Macao and Hong Kong at a future date, upon satisfaction of certain conditions, including the acquisition of such Rights by Welichem, and upon making an additional payment to Welichem of Cdn$15 million.
The transactions contemplated under the Stiefel Agreement, including the purchase of the Rights from the Vendors and the payment of the Signing Payment, was previously approved by the shareholders of Welichem at a special meeting held on July 5, 2012.
About WBI-1001: WBI-1001 is a novel, non-steroidal, topical anti-inflammatory new chemical entity (NCE) agent that has demonstrated efficacy and safety in Ph1 and Ph2 clinical trials for the treatment of mild to moderate psoriasis and moderate to severe atopic dermatitis (AD) for up to 12 weeks as a single therapy.About Welichem Biotech Inc. Welichem Biotech Inc. is a publicly-traded biotechnology company developing therapeutic drugs in the fields of autoimmune diseases and cancers. For a more complete business and financial profile of the Company, interested parties are encouraged to visit the Company's website at www.welichem.com. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release. This press release contains forward-looking statements that include our belief as to the potential of our products. Certain risks and uncertainties such as our ability to successfully commercialize the products could cause the Company's actual results to differ materially from those in the forward-looking statements.