FAIRFIELD, N.J.--(BUSINESS WIRE)--May 12, 2008--Unigene
Laboratories, Inc. (OTCBB: UGNE) announced that it has agreed with a
wholly-owned subsidiary of China Pharmaceutical Group Limited ("CPG"),
a limited liability company listed on the main board of the Hong Kong
Stock Exchange, to enter into a private placement with gross proceeds
to Unigene of $2,008,800. The purchaser is to receive 1,080,000 shares
of Unigene common stock in exchange for payment to Unigene of $1.86
per share, an 11% premium to the closing stock price on April 28,
2008, the date on which the parties agreed to the purchase price, in
anticipation of finalizing the transaction documents.
"This investment provides a tangible indication of our joint
venture partner's belief in the value of our technologies," commented
Dr. Warren Levy, President and CEO of Unigene. "We believe that the
opportunities in China for our joint venture are significant and
supported both by market needs and government-established priorities.
The full potential of these opportunities can only be realized through
a clear and continued commitment from the partners. Clearly, the terms
of our joint venture agreement and this investment confirm that
commitment."
CPG owns 55% of Unigene Biotechnology Co. Ltd., a joint venture
originally formed by Unigene and Shijiazhuang Pharmaceutical Group
Corporation, a legal entity established under the laws of the People's
Republic of China and the parent of CPG. The remaining 45% of Unigene
Biotechnology Co. Ltd. is owned by Unigene.
The securities to be sold in this private placement have not been
registered under the Securities Act of 1933, as amended, and may not
be offered or sold in the United States in the absence of an effective
registration statement or exemption from registration requirements.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities.
About Unigene
Unigene Laboratories, Inc. is a biopharmaceutical company focusing
on the oral and nasal delivery of large-market peptide drugs. Due to
the size of the worldwide osteoporosis market, Unigene is targeting
its initial efforts on developing calcitonin and PTH-based therapies.
Fortical(R), Unigene's nasal calcitonin product for the treatment of
postmenopausal osteoporosis, received FDA approval and was launched in
August 2005. Unigene has licensed the U.S. rights for Fortical to
Upsher-Smith Laboratories, worldwide rights for its oral PTH
technology to GlaxoSmithKline and worldwide rights for its calcitonin
manufacturing technology to Novartis. Unigene's patented oral delivery
technology has successfully delivered, in preclinical and/or clinical
trials, various peptides including calcitonin, PTH and insulin.
Unigene's patented manufacturing technology is designed to
cost-effectively produce peptides in quantities sufficient to support
their worldwide commercialization as oral or nasal therapeutics. For
more information about Unigene, call (973) 882-0860 or visit
www.unigene.com. For information about Fortical, visit
www.fortical.com.
Safe Harbor statements under the Private Securities Litigation
Reform Act of 1995: This press release contains forward-looking
statements regarding us and our business, financial condition, results
of operations and prospects. Such forward-looking statements include
those which express plans, anticipation, intent, contingency, goals,
targets or future development and/or otherwise are not statements of
historical fact. We have based these forward-looking statements on our
current expectations and projections about future events and they are
subject to risks and uncertainties known and unknown which could cause
actual results and developments to differ materially from those
expressed or implied in such statements. These forward-looking
statements include statements about the following: general economic
and business conditions, our financial condition, competition, our
dependence on other companies to commercialize, manufacture and sell
products using our technologies, the ability of our products to gain
market acceptance and increase market share, the uncertainty of
results of animal and human testing, the risk of product liability and
liability for human trials, our dependence on patents and other
proprietary rights, dependence on key management officials, the
availability and cost of capital, the availability of qualified
personnel, changes in, or the failure to comply with, governmental
regulations, the failure to obtain regulatory approvals for our
products and other risk factors discussed in our Securities and
Exchange Commission filings. Words such as "anticipates," "expects,"
"intends," "plans," "predicts," "believes," "seeks," "estimates,"
"may," "will," "should," "would," "potential," "continue," and
variations of these words (or negatives of these words) or similar
expressions, are intended to identify forward-looking statements. In
addition, any statements that refer to expectations, projections, or
other characterizations of future events or circumstances, including
any underlying assumptions, are forward-looking statements. These
forward-looking statements are not guarantees of future performance
and are subject to certain risks, uncertainties, and assumptions that
are difficult to predict. Therefore, our actual results could differ
materially and adversely from those expressed in any forward-looking
statements as a result of various risk factors.
CONTACT: The Investor Relations Group
Investor:
Erika Moran/Dian Griesel, Ph.D., 212-825-3210
Media:
Lynn Granito, 212-825-3210
SOURCE: Unigene Laboratories, Inc.
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