Exhibit 99.1
CONTACT:
- --------
Augustine Lawlor
LeukoSite, Inc. Kelly Conlon
(617) 621-9350 ext. 4020 Feinstein Kean Partners Inc.
gus_lawlor@leukosite.com (617) 577-8110
www.leukosite.com www.fkpi.com
FOR IMMEDIATE RELEASE
LEUKOSITE TO ACQUIRE PROSCRIPT AND RAISE $14.4 MILLION IN PRIVATE PLACEMENT
- Second Recent LeukoSite Acquisition Adds Two Compounds to Development
Portfolio -
CAMBRIDGE, MA, JUNE 23, 1999 - LeukoSite, Inc. (Nasdaq: LKST) announced today
that it has signed a definitive agreement to acquire ProScript, Inc., a
privately held biotechnology company with one anti-cancer compound in Phase I
clinical trials and an anti-inflammatory agent in advanced pre-clinical
development. Separately, LeukoSite signed a definitive agreement to raise $14.4
million in a private placement of approximately 1,500,000 unregistered shares of
LeukoSite's common stock to Perseus Capital, LLC and HealthCare Ventures LLC.
The two transactions are expected to close in July.
LeukoSite is acquiring ProScript for approximately 187,000 newly issued shares
of LeukoSite common stock valued at $2.3 million and for $430,000 in cash. In
addition, ProScript shareholders will be entitled to additional cash payments
upon the achievement of certain milestones and royalties related to ProScript
compounds and related to a ProScript research collaboration with Hoechst Marion
Roussel, Inc.
"This acquisition adds two promising compounds to our development portfolio,
along with the innovative drug discovery platform that yielded both product
candidates," said Christopher Mirabelli, Ph.D., Chairman and CEO of
LeukoSite. "Following the acquisition, LeukoSite will have five drug
candidates in clinical development. The lead ProScript compound, PS-341,
which is in clinical trials to treat patients with cancer, allows us to build
upon our success in developing CAMPATH(Registered Trademark), the Company's
monoclonal antibody for patients with refractory chronic lymphocytic
leukemia. The proceeds from the private placement will help to support all of
our clinical development programs, as well as to advance discovery efforts
related to new targets and compounds."
"We believe that this acquisition offers significant scientific and business
synergies for the future," said Dan Burns, President and CEO of ProScript.
- more -
ProScript is the second company LeukoSite has acquired in recent months, Dr.
Mirabelli noted. In February 1999, LeukoSite acquired CytoMed and its small
molecule development programs. "We believe that strategic acquisitions
complement our in-house programs providing a way to add unpartnered
clinical-stage compounds to our pipeline," added Dr.
Mirabelli.
In addition to CAMPATH, which has completed pivotal studies in patients with
refractory chronic lymphocytic leukemia, LeukoSite has two monoclonal antibodies
in clinical development, LDP-02 in Phase II studies in patients with
inflammatory bowel disease; and LDP-01 in Phase II trials in kidney transplant
and stroke patients. A small molecule compound, LDP-977, is in Phase I clinical
studies and is expected to enter Phase IIa trials in asthma this year.
PS-341, the lead ProScript compound, is the first of a new class of small
molecule chemotherapeutic agents that acts through a mechanism that is distinct
from existing anti-cancer drugs. The agent's activity is based on inhibition of
the proteasome which regulates the breakdown of proteins that are critical for
driving cell proliferation. In preclinical studies, PS-341 has demonstrated a
number of highly promising anti-tumor activities, including the ability to
override an established cancer drug resistance mechanism. In these studies,
PS-341 has shown anti-tumor activity synergistically with existing
chemotherapeutic compounds and as a single agent.
The Phase I clinical trials of PS-341 are ongoing for the treatment of a variety
of advanced cancers at the University of Texas, M.D. Anderson Cancer Center and
Memorial Sloan-Kettering Cancer Center. The current trials are supported by
several external organizations, including the Association of the Cure for Cancer
of the Prostate (CaP-CURE). Additional Phase I trials of PS-341 are expected to
begin in the coming months, including studies sponsored by the National Cancer
Institute (NCI) under an existing Cooperative Research and Development Agreement
(CRADA) between ProScript and the NCI.
The second ProScript compound, PS-519, is currently in late preclinical
development. It is the most advanced member of another class of proteasome
inhibitors and possesses anti-inflammatory properties that in preclinical
studies have shown promise in a variety of anti-inflammatory conditions
including myocardial infarction, asthma, multiple sclerosis and stroke. PS-519
acts on a key intracellular mechanism that controls the activation of
inflammatory molecules. Initial human safety studies in normal volunteers are
expected to begin later this year. ProScript, located in Cambridge, MA, was
originally founded in 1992 and has approximately 25 employees.
Upon the closing of both transactions, LeukoSite will have over $58 million in
cash resources. At the closings, the Company will have approximately 14.6
million shares outstanding. LeukoSite self-managed both transactions.
-- more --
LeukoSite is a biotechnology company developing proprietary monoclonal antibody
and small molecule drugs to treat patients with cancer and inflammatory,
autoimmune and viral diseases. The Company's most advanced drug candidate,
CAMPATH has completed pivotal licensing trials and is in development with ILEX
Oncology. After the completion of the acquisition of ProScript, LeukoSite will
have five drug candidates in clinical development. In addition to its monoclonal
antibody research and development programs, LeukoSite has nine partnered small
molecule research and development programs. The Company is collaborating with
Warner-Lambert Co., Roche Bioscience, Kyowa Hakko Kogyo Co., Ltd., Genentech,
Inc., ILEX Oncology, Inc. and MorphoSys AG.
Statements in this press release regarding the development of the Company's and
ProScript's drug candidates, including the ability to commence, conduct and
complete clinical trials, constitute forward-looking statements and are subject
to numerous risks and uncertainties, including but not limited to the difficulty
in identifying and recruiting suitable patients for clinical trials, risks in
technology and product development, failure to successfully complete clinical
trials or obtain required regulatory approvals, competitive risks and other
risks detailed from time to time in the Company's filings with the Securities
and Exchange Commission. The actual results may differ materially from those
projected in the forward-looking statements. The Company disclaims any
obligation to update these forward-looking statements.
News releases issued by LeukoSite, Inc. are available through PR Newswire's
"Company News On-Call," by calling 1-800-758-5804 and entering the Company's
extension number 114510.
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