QLT acquires leading edge ocular drug delivery system from ForSight Labs

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Date: Tue, 9 Oct 2007 10:03:21 -0400

PR Newswire, New York
Tuesday, October 09, 2007

By Press Release

VANCOUVER, Oct. 9 /PRNewswire-FirstCall/ - QLT Inc. (NASDAQ: QLTI; TSX:
QLT) announced today that it has entered into an agreement under which QLT
will acquire privately held ForSight Newco II, Inc. The acquisition
includes ForSight Newco II's proprietary ocular punctal plug drug delivery
system with the potential for future multi-product opportunities. The first
clinical candidate utilizing this leading edge platform technology will
target glaucoma.
"This acquisition is a clear strategic fit. It complements our
expertise in ophthalmology, and it supports our goal to expand our pipeline
of ocular products," said Bob Butchofsky, President and Chief Executive
Officer of QLT. "We believe that our proprietary system for delivery of
medications to the eye using punctal plugs will be an important therapeutic
advance in the field of ophthalmology, and could become a key contributor
to our future growth."
Under the terms of the agreement, QLT will acquire all of the
outstanding shares of ForSight Newco II for $42 million on closing along
with future milestone payments and royalties on net sales of products. The
milestone payments consist of a one-time $5 million payment upon the
initiation of a phase III clinical trial for the first product, $20 million
on first commercialization of each of the first two products using ForSight
Newco II's proprietary technology and $15 million on first
commercialization of each subsequent product. The acquisition is expected
to close early in the fourth quarter of 2007 and is subject to customary
closing conditions. On completion of the acquisition, ForSight Newco II
will become a wholly-owned subsidiary of QLT.
In order to facilitate the Company's focus on innovative ocular drug
delivery, QLT plans to continue its divestment of non-core assets,
including selling the vacant property adjacent to its headquarters in
Vancouver, British Columbia. In addition, the Company plans to monetize the
value built up in its headquarters by obtaining a mortgage or other
financial structures.
"We are very excited to work with the experienced drug and device
development teams at QLT to advance this technology," said Eugene de Juan
Jr., M.D., Founder and Vice-Chairman of ForSight Labs. "We think this is a
very significant technology that could ultimately lead to a sea of change
in the way medications are delivered to the eye."
ForSight Newco II's proprietary punctal plugs are a non-invasive drug
delivery system capable of delivering a variety of drugs to the eye over
time through controlled release to the tear film. Sustained release punctal
plugs could potentially replace eye drops for glaucoma, dry eye, allergies
and postoperative care, which represent a $6 billion market. In addition,
plugs may provide a more effective, convenient and reliable treatment
alternative that could ultimately improve patient compliance with their
medication and outcomes for their disease.
Through this acquisition, QLT, through its wholly-owned subsidiary,
will obtain worldwide rights to commercialize ForSight Newco II's
proprietary punctal plug technology combined with any active pharmaceutical
ingredient, and will lead and fund future development efforts in this
program. QLT plans to initiate a Phase I/II clinical trial with the first
product using ForSight Newco II's proprietary technology for the treatment
of glaucoma in the first half of 2008. Glaucoma affects approximately 65
million people worldwide and is the second leading cause of blindness.
Approximately 99% of glaucoma patients are treated with topical
medications, 4-6% receive surgery and on average each diagnosed patient has
multiple visits to ophthalmologist per year. Compliance with topical eye
drop medications in glaucoma patients is poor, with approximately half of
treated patients not refilling their prescription after the first six
months of therapy. In spite of this, the glaucoma market continues to grow
and in the U.S. represents a $1.7 billion market.
About ForSight Labs, LLC
ForSight New Co. II is the second company to be spun out of ForSight
Labs, LLC (http://www.forsightlabs.com), an ophthalmic technology incubator
established in 2005 by renowned retinal surgeon, Eugene de Juan Jr., M.D.
in collaboration with The Foundry (http://www.thefoundry.com). ForSight is
backed
by investors Morgenthaler Ventures (http://www.morgenthaler.com), Split Rock
Partners (http://www.splitrock.com), and Versant Ventures
(http://www.versantventures.com). ForSight Labs, LLC is a community of
ophthalmic
innovation focused on improving the sight, care, and quality of life of
visually impaired patients by creating high-impact eye care companies.
ForSight Labs is based in Menlo Park, California.
About QLT Inc.
QLT Inc. is a global biopharmaceutical company dedicated to the
discovery, development and commercialization of innovative therapies. Our
research and development efforts are focused on pharmaceutical products in
the fields of ophthalmology and dermatology. In addition, we utilize two
unique technology platforms, photodynamic therapy and Atrigel(R), to create
products such as Visudyne(R) and Eligard(R). For more information, visit
our web site at http://www.qltinc.com.
Conference Call Information
QLT Inc. will hold an investor conference call to discuss the agreement
with ForSight Newco II, Inc. on Tuesday, October 9 at 8:30 a.m. ET (5:30
a.m. PT). The call will be broadcast live via the Internet at
http://www.qltinc.com. To participate on the call, please dial 1-800-319-4610
(North America) or 604-638-5340 (International) before 8:30 a.m. ET. A
replay of the call will be available via the Internet and also via
telephone at 1-800-319-6413 (North America) or 604-638-9010
(International), access code 5396, followed by the "number" sign.
Atrigel is a registered trademark of QLT USA, Inc.
Visudyne is a registered trademark of Novartis AG.
Eligard is a registered trademark of Sanofi-aventis.
QLT Inc. is listed on The NASDAQ Stock Market under the trading symbol
"QLTI" and on The Toronto Stock Exchange under the trading symbol "QLT."
Certain statements in this press release constitute "forward-looking
statements" of QLT within the meaning of the Private Securities Litigation
Reform Act of 1995 and constitute "forward-looking information" within the
meaning of applicable Canadian securities laws. Such statements include,
but are not limited to, the statements relating to our plans to dispose of
or monetize value in certain non-core assets, statements relating to our
proposed acquisition of ForSight Newco II, Inc., including our expectation
that the acquisition will be successfully completed, anticipated scope and
cost of development work, potential targets, potential future product
opportunities and growth and timing of closing, and statements containing
words such as "expects," "will," "could," "intends," "should," "may,"
"plans," "believes," "potential" and similar expressions that do not relate
to historical matters. These forward-looking statements are only
predictions which involve known and unknown risks, uncertainties and other
factors that may cause actual events or results to differ materially.
Factors that could cause actual events or results to differ materially
include, but are not limited to: the risk that the proposed acquisition
fails to close due to closing conditions not being satisfied or for any
other reason, uncertainties relating to development and commercialization
of products and technologies and associated costs, the safety and
effectiveness of the acquired technology, the timing, expense and
uncertainty associated with the regulatory approval process for products,
uncertainties regarding our future operating results, the general
competitive condition in the biotechnology and drug delivery industry and
general economic conditions, fluctuations in the real estate market and
interest rates; and other risk factors which are described in detail in
QLT's Annual Information Form on Form 10-K, quarterly reports on Form 10-Q,
Registration Statement on Form S-4 and other filings with the U.S.
Securities and Exchange Commission and Canadian securities regulatory
authorities. Forward-looking statements are based on our current
expectations and QLT does not assume any obligation to update such
information to reflect later events or developments, except as may be
required by law.
CONTACT: QLT Inc.: Vancouver, Canada, Therese Hayes, Telephone: (604)
707-7000 or (800) 663-5486, Fax: (604) 707-7001

SOURCE QLT Inc.

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QLT acquires leading edge ocular drug delivery system from ForSight Labs

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