MISSISSAUGA, ON, July 12, 2016 /CNW/ - Crescita Therapeutics Inc. (TSX:CTX) (Crescita or the Company), a drug development company that owns topical products for treating medical conditions in dermatology and pain and with a significant cash balance and no debt, today provided an update on the wind-down of its Immunology Group.
Effective July 11, 2016, the Company sold its manufacturing facility based in Germany that produces the active ingredient in WF10™ and Oxoferin™ and the intellectual property related to WF10 to Dr. Friedrich-Wilhelm Kuehne, the inventor of WF10 for nominal proceeds. This divestiture is part of the Company's plan to reduce its cash burn. The Company will realize a significant monthly cost savings, as it will no longer be funding the ongoing operating losses of the Immunology Group. Further, there will be additional future savings as the Company completes its planned wind-down of Immunology Group operations.
As part of this initiative, Dr. Henrich Guntermann, Crescita's President, Europe and Autoimmune Group, who was responsible for all Immunology Group activities, has resigned from his current position at Crescita. Dr. Guntermann will retain his position on Crescita's Board of Directors. The Company is also continuing the orderly closure of its Leipzig office which it expects to complete in the third quarter of 2016. When the restructuring is complete later in 2016, the Company expects to have a reduced cash burn, significant cash and no debt.
"We would like to thank Dr. Guntermann for his years of service as a key member of the Nuvo Research and Crescita executive management teams and we look forward to the benefit of his continued advice and support as a member of the Board of Directors," said Dan Chicoine, Crescita's Chairman and CEO. "We are making progress on the wind-down of the Immunology Group and our goal of significantly reducing the Company's ongoing cash burn. These activities are intended to maximize the cash that can be deployed to maximize the value of the Company."
About Crescita Therapeutics Inc.
Crescita (TSX:CTX) is a publicly traded, Canadian drug development company that owns topical products for treating medical conditions in dermatology and pain. Crescita owns multiple proprietary drug delivery platforms that support the development of patented formulations that can facilitate the delivery of active drugs into or through the skin. Crescita has one commercial product, Pliaglis that is licensed globally (except for Canada, the United States and Mexico where Crescita owns the rights). Crescita was created on March 1, 2016 by the reorganization of Nuvo Research Inc. into two separate publicly traded companies. Crescita common shares commenced trading on the TSX on March 7, 2016. Crescita's board and management team have demonstrated success in building Crescita's predecessor company, Nuvo Research Inc., including developing multiple drugs that are now approved and commercialized and negotiating multiple licensing transactions. For additional information, please visit www.crescitatherapeutics.com.
Certain statements in this press release constitute forward-looking information and/or forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements include, but are not limited to, management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "believe", "should" or "plans", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by such statements. Factors that could cause such differences include, but are not limited to, general business and economic uncertainties and adverse market conditions; uncertainties related to Crescita's ability to realize the anticipated benefits of the Reorganization; the expected future attributes and success of Crescita; the successful execution of Crescita's priorities and strategies; the reliability of Nuvo Research's historical financial information as an indicator of Crescita's historical or future results; as well as other risk factors included in Nuvo Reseach's Management Information Circular dated December 31, 2015 (the Reorganization Circular) and most recent Crescita Annual Information Form dated March 23, 2016 under the heading "Risks Factors", and as described from time to time in the reports and disclosure documents filed by Crescita with Canadian securities regulatory agencies and commissions. Certain risks and uncertainties specific to the Reorganization and Crescita are further described in the Reorganization Circular. These and other factors should be considered carefully and readers should not place undue reliance on Crescita's forward-looking statements. As a result of the foregoing and other factors, no assurance can be given as to any such future results, levels of activity or achievements and neither Crescita nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. Although the forward-looking information contained in this press release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. All forward-looking statements in this press release are qualified by these cautionary statements. The forward-looking statements contained herein are made as of the date of this press release and, except as required by applicable law, Crescita undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Crescita Therapeutics Inc.