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EXHIBIT 99.1
[ALTAREX LOGO]
CONTACTS:
Sondra Henrichon Wayne Hendry
Director, Investor Relations and
Corporate Communications Investor Relations
AltaRex Corp. The Equicom Group, Inc
Waltham, MA USA Toronto, ON Canada
(781) 672-0138 ext. 5110 (416)815-0700 ext. 238
shenrichon@altarex.com whendry@equicomgroup.com
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FOR IMMEDIATE RELEASE
ALTAREX AND DOMPE FORM STRATEGIC BUSINESS ALLIANCE
WALTHAM, MA, NOVEMBER 16, 2000 - ALTAREX CORP. (TSE: AXO, OTC: ALRXF) today
announced that the Company has entered into a memorandum of understanding (MOU)
with Dompe Farmaceutici S.p.A. (Milan, Italy) to form a strategic business
alliance for its lead product OvaRex(TM) MAb for a territory that includes
Italy, Spain, Portugal, Switzerland, Austria and certain Eastern European
countries. The MOU grants Dompe the rights of first offer for additional cancer
antibodies in the territory.
In accordance with the MOU, Dompe has escrowed US$5 million (approximately
C$7.75 million) to purchase AltaRex Common Shares on a private placement basis
at a price of C$0.55 per share, the closing price of AltaRex shares on Thursday,
November 9, 2000. The purchase of shares requires approval by regulatory
authorities in Canada and the shares will be subject to a 180-day lock-up. This
investment represents part of a Company plan to raise C$15 million through the
sale of Common Shares. In that regard the Company has filed a preliminary
prospectus in certain provinces of Canada for a public offering of Common Shares
for the purpose of fulfilling this plan.
Pursuant to the MOU, Dompe also has an option to purchase an additional US$5
million in equity in a private placement concurrent with a future public
offering in the United States. Additionally, Dompe will pay up to US$1.25
million upon OvaRex(TM) MAb commercialization in Spain and Portugal.
Under the terms of the MOU, the collaboration is structured so that AltaRex
remains responsible for global product development and registration. The Company
will work closely and cooperatively with Dompe and other European collaborators
in achieving registration for OvaRex(TM) MAb throughout Europe. Dompe becomes
responsible for certain OvaRex(TM) clinical trial obligations, including
clinical trial costs, and for product marketing, sales and distribution in the
territory. AltaRex and Dompe will share profits after expenses.
ALTAREX CORP.
610 LINCOLN STREET
WALTHAM, MA 02451
TEL. 781.672.0138 FAX. 781.672.0142
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[ALTAREX LOGO]
NOVEMBER 16, 2000
ALTAREX AND DOMPE FORM STRATEGIC BUSINESS ALLIANCE
PAGE 2 OF 3
"This step into major European Economic Community markets is consistent with our
strategy to maximize returns in select regions through collaborations with the
regional market leaders who have significant expertise in marketing biotech
products," commented Richard E. Bagley, President and Chief Executive Officer of
AltaRex. "This alliance builds on our previously announced joint ventures by
successfully growing our global marketing presence with `best in class' partners
who have an outstanding record of accomplishment."
"I'm extremely pleased with this strategic business alliance which fits
perfectly with our strategy to grow our biotech offerings though product rights
and collaborations in specialized areas of medicine," stated Sergio Dompe, Chief
Executive Officer of Dompe Farmaceutici. "This alliance with AltaRex reflects
our objective to strengthen and expand our biopharmaceutical operations in
Southern and Eastern European markets as well as to add products fitting with
our pipeline in the oncology area, a key strategic business segment."
Earlier this year, AltaRex announced 50:50 joint venture collaborations
with Medison Pharma Ltd. (for Israel and the Middle East) and Genesis Pharma
S.A. (for Greece and the Balkans).
OvaRex(TM) MAb is the Company's lead product, currently in late-stage clinical
development for the treatment of ovarian cancer. OvaRex(TM) MAb has received
Fast Track designation from the U.S. Food and Drug Administration (FDA) which
can allow for accelerated review. The Company will work with Dompe and its other
partners to obtain regulatory approval and to bring OvaRex(TM) MAb to market in
Southern and Eastern Europe as soon as possible. Dompe will serve as an expert
advisor to AltaRex in this development and registration process.
About Dompe Farmaceutici S.p.A.
Based in Milan, Italy, Dompe is one of Europe's most integrated and innovative
pharmaceutical and biotech companies. Traditionally established in the areas of
respiratory, anti-inflammatory and osteo-articular pharmaceuticals, Dompe has
since expanded its reach into biotechnology.
About Dompe Biotec
Dompe Biotec is a joint venture between Dompe Farmaceutici and Amgen. Dompe
Biotec is the leading biotechnology company in Italy focused on marketing
biotechnological drugs of high added value within specialized areas of medicine.
Dompe Biotec gained access to three early products of biotechnology by allying
with the large multinational firms that held European rights to them. Dompe
Biotec has since made a point of directly pursuing North American biotech
companies with innovative treatments for specific medical conditions. Dompe
Biotec has established successful partnerships with global biotechnology
companies such as Biogen, Genzyme and Pathogenesis, and more recently, Hemosol.
ALTAREX CORP.
610 LINCOLN STREET
WALTHAM, MA 02451
TEL. 781.672.0138 FAX. 781.672.0142
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[ALTAREX LOGO]
NOVEMBER 16, 2000
ALTAREX AND DOMPE FORM STRATEGIC BUSINESS ALLIANCE
PAGE 3 OF 3
About AltaRex Corp.
AltaRex Corp. is focused exclusively on the research, development and
commercialization of antibody-based immunotherapeutic products to prolong life
and reduce the suffering associated with late-stage cancers. Data from clinical
studies suggest that through multiple mechanisms, AltaRex's proprietary platform
technology enhances the ability of the human immune system to produce an
anti-tumor response. The Company has five antibody-based products in various
stages of development. Its most advanced product is OvaRex(TM) MAb, in
late-stage clinical development for the treatment ovarian cancer.
Additional information about AltaRex research and development, news and events
can be found on its web site at www.altarex.com. Clinical information can also
be found on the CenterWatch web site at www.centerwarch.com. Additional
information about ovarian cancer can be found at www.nci.nih.gov,
www.ovariancanada.org and at www.ovarian.org.
This news release contains forward-looking statements that involve risks and
uncertainties, which may cause actual results to differ materially from the
statements made. For this purpose, any statements that are contained herein that
are not statements of historical fact may be deemed to be forward-looking
statements. Without limiting the foregoing, the words "believes," "anticipates,"
"plans," "intends," "expects" and similar expressions are intended to identify
forward-looking statements. Such risks and uncertainties include, but are not
limited to the risk that a definitive agreement is not entered into with Dompe,
our dependence on corporate alliances such as the alliance with Dompe referred
to above, our need for capital and the risk that the Company can not raise funds
on a timely basis or on satisfactory terms, changing market conditions,
completion of clinical trials, patient enrollment rates, uncertainty of
pre-clinical, retrospective and early clinical trial results which may not be
indicative of results that will be obtained in ongoing or future clinical
trials, the establishment of manufacturing processes, the timely development,
regulatory approval and market acceptance of the Company's products, uncertainty
as to whether patents will issue from pending patent applications and, if
issued, as to whether such patents will be sufficiently broad to protect the
Company's technology, and other risks detailed from time-to-time in the
Company's filings with the United States Securities and Exchange Commission and
Canadian securities authorities.
THE TORONTO STOCK EXCHANGE HAS NOT APPROVED OR DISAPPROVED OF THE
INFORMATION CONTAINED HEREIN.
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ALTAREX CORP.
610 LINCOLN STREET
WALTHAM, MA 02451
TEL. 781.672.0138 FAX. 781.672.0142