Quantcast
Last updated on April 16, 2014 at 6:35 EDT

BARDA EXERCISES OPTIONS WITH CANGENE WORTH US$61 MILLION UNDER BOTULISM ANTITOXIN SUPPLY CONTRACT

June 3, 2011

Readers are referred to the cautionary notes regarding
Forward-looking Information at the end of this release

Listed TSX, Symbol:  CNJ

WINNIPEG, June 3, 2011 /PRNewswire/ – Cangene Corporation (TSX: CNJ) today
announces that the Biomedical Advanced Research and Development
Authority (“BARDA”), the agency within the U.S. Department of Health
and Human Services that administers its biodefence stockpiling
contracts, will exercise options under a botulism antitoxin (“BAT”)
supply contract, which are expected to generate approximately US$61
million in additional revenue for Cangene over the next three to four
years. In addition, the delivery schedule under the existing contract
will be extended to 2018 for the approximately 80,000 doses remaining,
with a heavier weighting in 2017 and 2018. The options to be exercised
increase the total contract revenue value to Cangene from US$362
million to US$423 million. While the extended delivery schedule spreads
the revenue associated with this part of the contract over a greater
period of time, it ensures a more predictable revenue stream over the
upcoming years. Through the end of the second quarter of fiscal 2011,
Cangene has already recognized US$200.1 million in revenue from this
contract. The additional work included in the US$61 million of options
will primarily involve plasma collection in the next three years, along
with additional stability studies and licensure-related work. BARDA has
also retained a contract option under which some of the collected
plasma may be fractionated or used to manufacture bulk product over the
period from 2012 to 2016.

“This is an extremely positive step. Not only does this significantly
increase the total revenue value of this contract, it also indicates
that BARDA is adopting a strategy of extending these types of contracts
to replenish supplies of biodefence products. As the supplier for three
products in the U.S. Strategic National Stockpile, that’s an indication
we are happy to see,” said Michael Graham, acting President and CEO of
Cangene. “It also provides for a consistent addition to our revenue
stream for the next seven years.”

About Cangene Corporation
Cangene is one of Canada’s largest and earliest biopharmaceutical
companies. It was founded in 1984 and is headquartered in Winnipeg,
Manitoba. Cangene has approximately 700 employees in six locations
across North America and its products are sold worldwide. It operates
manufacturing facilities in Winnipeg, Manitoba and Baltimore, Maryland.
Cangene operates three U.S. and one Canadian plasma-collection
facilities branded as Cangene Plasma Resources (www.cangeneplasma.com). In addition, it has a regulatory affairs, sales and corporate
communications office in Toronto, Ontario.

Cangene is focused on developing therapeutics for infectious diseases,
and the Company uses patented manufacturing processes to produce
plasma-derived and recombinant therapeutic proteins. Cangene has four
FDA and/or Health Canada-approved hyperimmune products. In addition,
the Company has several more products in development at various stages.
Three of Cangene’s products have been accepted into the U.S. Strategic
National Stockpile–botulism antitoxin (investigational product),
anthrax immune globulin (investigational product) and a vaccinia immune
globulin, a product that may be used to counteract certain
complications that may arise from smallpox vaccination. Cangene’s
wholly-owned subsidiary, Cangene bioPharma, Inc., is based in
Baltimore, Maryland and includes its U.S. commercial sales and
marketing office as well as a significant contract-manufacturing
business (www.cangenebiopharma.com). Cangene’s website, www.cangene.com, includes product and investor information, including past news
releases.

Forward-looking and risk information
The reader should be aware that Cangene’s businesses are subject to
risks and uncertainties that cannot be predicted or quantified;
consequently, actual results may differ materially from past results
and those expressed or implied by any forward-looking statements.
Factors that could cause or contribute to such risks or uncertainties
include, but are not limited to: the regulatory environment including
the difficulty of predicting regulatory outcomes; changes in the value
of the Canadian dollar; the Company’s reliance on a small number of
customers including government organizations; the demand for new
products and the impact of competitive products, service and pricing;
availability and cost of raw materials, especially the cost,
availability and antibody concentration in plasma; fluctuations in
operating results; government policies or actions; progress and cost of
clinical trials; reliance on key strategic relationships; costs and
possible development delays resulting from use of legal, regulatory or
legislative strategies by the Company’s competitors; uncertainty
related to intellectual property protection and potential costs
associated with its defence; the Company’s exposure to lawsuits; and
other matters beyond control of management. Risks and uncertainties are
discussed more extensively in the MD&A section of the Company’s most
recent annual report and annual information form, which are available
on the Company’s website or on SEDAR at www.sedar.com.

The preceding cautionary statements should be considered in connection
with all written or oral statements, especially forward-looking
statements, that are made by the Company or by persons acting on its
behalf and in conjunction with its periodic filings with Securities
Commissions, including those contained in the Company’s news releases
and most recently filed annual information form. Forward-looking
statements can be identified by the use of words such as “expects”,
“plans”, “will”, “believes”, “estimates”, “anticipates”, “intends”,
“may”, “bodes” and other words of similar meaning (including negative
and grammatical variations). Should known or unknown risks or
uncertainties materialize, or should management’s assumptions prove
inaccurate, actual results could vary materially from those
anticipated. The Company undertakes no obligation to publicly make or
update any forward-looking statements, except as required by applicable
law.

“Cangene” is a trademark belonging to Cangene Corporation.

SOURCE Cangene Corporation


Source: newswire