RESEARCH TRIANGLE PARK, N.C. and TEL AVIV, ISRAEL - August 22, 2001 - Quintiles Transnational Corp. (Nasdaq: QTRN) and Novia Pharmaceuticals Ltd. today announced a strategic alliance to provide preclinical services for Novia's lead compound to treat central nervous system (CNS) disorders.
The agreement calls for Quintiles to provide preclinical services for Novia's lead compound, AD4. Novia will subcontract all preclinical work on the project to Quintiles' Early Development and Laboratory Services in Edinburgh, Scotland. Quintiles, through its PharmaBio Development group, will make an investment in Novia and receive an equity position and royalties. In addition, the agreement enables Quintiles to be Novia's preferred provider to continue future global clinical development and commercialization services for Novia's present and future products.
The agreement focuses on Novia's lead compound, known by its laboratory name AD4, an antioxidant that in preclinical studies has been shown to enter the brain following oral administration. The compound is undergoing further preclinical testing under this agreement for the possible treatment of Parkinson's disease as well as other CNS indications.
The alliance also has received funding from the Israel - U.S. Binational Industrial Research and Development Foundation (BIRD), a foundation established by the Israeli and U.S. governments to support joint projects between the two countries.
Joseph P. Clancy, Chief Executive Officer of Quintiles Early Development and Laboratory Services, said: "This innovative agreement with Novia brings together our extensive preclinical services with the investment capabilities of our PharmaBio group in a unique business arrangement designed to help Novia develop a promising compound. This deal exemplifies the arrangements we are pursuing with PharmaBio to help customers with their preclinical needs."
Avi Livnat, General Manager of Novia, said: "We're delighted to receive the support from both Quintiles and the BIRD Foundation as we continue studying AD4, a compound which has been shown in preclinical studies to enter the brain following oral administration and to have a strong neuro-protective effect. Neuro-degenerative diseases such as Parkinson's and ALS as well as Alzheimer's disease, multiple sclerosis, acute stroke and other disorders of the aging population, are significant public health concerns that novel compounds such as AD4 may help address. Quintiles brings scientific expertise, a full-range of preclinical services and investment capabilities as we move toward the next milestone with this important compound."
About Quintiles Transnational and PharmaBio Development
Quintiles Transnational is the world's leading provider of information, technology and services to bring new medicines to patients faster and improve healthcare. Headquartered near Research Triangle Park, North Carolina, Quintiles employs a global workforce of 18,000 in 39 countries. Quintiles Transnational is a member of the S&P 500 and Fortune 1000. For more information visit the company's web site at www.quintiles.com.
PharmaBio Development, part of Quintiles Transnational, creates innovative partnering solutions to help life-science companies develop and market new products to improve human health.
Information in this press release contains "forward-looking statements" regarding Quintiles that involve risks and uncertainties that could cause actual results to differ materially, including without limitation, the risk that the market for our products and services will not grow as we expect, the risk that PharmaBio transactions will not generate return on investment, revenues or profit at the rate or levels we anticipate, our ability to efficiently distribute backlog among therapeutic business units and match demand to resources, actual operating performance, the ability to maintain large client contracts or to enter into new contracts, changes in trends in the pharmaceutical industry, and the ability to operate successfully in new lines of business. Additional factors that could cause actual results to differ materially are discussed in the company's recent filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K, its Form 8-Ks, and its other periodic reports, including Form 10-Qs. Statements in this release regarding Novia Pharmaceuticals and Quintiles have been made by their respective company under that company's sole responsibility.
About Novia Pharmaceuticals Ltd.
Novia Pharmaceuticals Ltd. is a new, private Israeli company whose founders and main shareholders are the Yissum Research Development Co. of the Hebrew University of Jerusalem, Mor Research Applications Ltd., Ramot at the Tel-Aviv University and Professors Atlas, Melamed and Offen. Yissum, Ramot and Mor have entered a Research and License with Novia to develop novel pharmaceutical antioxidants that readily enter the brain for the treatment and prevention of neuronal lesions caused by neuro-degenerative diseases, thus prolonging life expectancy and improving quality of life.
About the BIRD Foundation
The Israel-U.S. Binational Industrial Research and Development Foundation, BIRD, was established by the two governments in 1977, and has since supported 600 projects. BIRD works closely with the Office of the Chief Scientist (OCS) at the Israeli Ministry of Industry and Trade, and with the U.S. National Institute of Standards and Technology (NIST).
The Foundation finds strategic partners for the development of joint products. BIRD funds up to 50 percent of a project's budget, from the Research and Development stage to initial marketing, without taking equity. Repayments to BIRD come from revenues generated from sales of the project's products. If a project fails to reach commercial realization, BIRD does not request any grant repayment.