Miraculins Inc announces that it has executed a definitive agreement to acquire from PreMD Inc all relevant assets, including intellectual property, licenses and regulatory approvals, inventories, data and marketing materials required to commercialize the PREVU* Skin Cholesterol Test.

Highlights
 

  • Miraculins to acquire PREVU* Skin Cholesterol Test in exchange for combination of cash, stock and ongoing royalty;
  • Skin cholesterol is a novel marker that reliably predicts higher cholesterol accumulation in the arteries;
  • Simple, non-invasive, inexpensive test addresses major worldwide market of cardiovascular risk assessment; and
  • Product has received regulatory clearance in US, Canada and Europe with successful test marketing in US and Canada

"The significant worldwide potential of the PREVU* Skin Cholesterol test is now ready to be realized and the test will be given new life through this transaction," said Christopher J. Moreau president and CEO of Miraculins. "PreMD’s financial difficulties have prevented commercialization of this product and our company is uniquely positioned to successfully move PREVU* into the marketplace. Current global economic conditions have pushed us to identify opportunities with both near term and high growth potential. We are confident in our ability to unlock the value of this product, launch it in key markets, and bring revenues to the company quickly and efficiently."

At closing, Miraculins will pay to PreMD the purchase price of $250,000 CDN in cash and issue to PreMD 1,822,158 common shares from treasury. After closing, Miraculins will pay to PreMD a 10 percent ongoing royalty on its gross revenue associated with PREVU*, with Miraculins retaining the right to buy-out the royalty at anytime for a one-time payment of $1,000,000 CDN.

PREVU* has received regulatory clearance in important jurisdictions such as Europe and Canada as a general part of coronary artery disease (CAD) risk assessment. In the United States, the test has received clearance as an adjunct to current risk assessment procedures for patients already considered at risk for CAD. Skin cholesterol readings provide valuable additional information for CAD risk assessment. Skin contains over 11 percent of the body’s cholesterol and ages in parallel with vascular connective tissue. As blood vessel walls accumulate cholesterol, so does skin tissue. A high skin cholesterol level is a reliable predictor of higher cholesterol accumulation in the arteries and, accordingly, a predictor of a patient’s risk of heart disease.

"Heart disease remains the leading cause of death worldwide and identifying patients at risk before they have a coronary event remains a major unmet medical need," said Moreau. "The potential of this test to help millions of patients worldwide is high. It is estimated that globally 540 million blood cholesterol tests will be performed this year with 250 million tests being performed in the US alone. PREVU* provides valuable information, non-invasively and at a low cost, which addresses one of the biggest challenges in healthcare today. Miraculins looks forward to making this test widely available to patients and caregivers."

Miraculins and PreMD expect the transaction, which is subject to customary closing conditions, to close within 10 days. Bloom Burton & Co. has advised on the transaction.

Source: Miraculins,