Paladin in joint venture for new psoriasis treatment

Montreal drug distributor Paladin Pharma Inc. has formed a joint-venture with Edmonton developer Isotechnika Inc. to commercialize voclosporin, a new treatment for psoriasis, a skin disorder affecting several million people in North America.

Paladin is putting up $7 million in cash for a 19 per cent interest in a new joint company called Isotechnika Pharma Inc. that will continue development of voclosporin. Paladin will also commit a further $4.35 million for voclosporin research.

The joint company will market the drug in Canada, Mexico, Central and South America, Israel and South Africa and will collect royalties on Paladin's sales in those regions. Paladin will receive royalties on future sales in other markets.

"Phase III clinical trials have just been completed on voclosporin for psoriasis and it has larger market potential in the tranplant area," said Jonathan Goodman, CEO of Paladin. "It provides us with another product to commercialize outside Canada, joining our growing international business. It may also lead to further co-operation with Isotechnika."

IsoTerchnika welcomed the injection of new capital and said it retains marketing rights for voclosporin in the U.S., Europe and Asia. "With our improved capital, we're better positioned to secure a gobal commercialization deal for voclosporin."

Palafdin also posted first-quarter revenue of $25.8 million, up 53 per cent from a year earlier, and net earnings of $3.1 million or 20 cents a share, up from $1.,5 million or 10 cents a share a year earlier. At March 31 it had $32.5 million of cash to support more product acquisitions.

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