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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16a, 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Month of September, 1999
ALTAREX CORP.
(Exact name of Registrant as specified in its charter)
CAMPUS TOWER
#300, 8625 - 112 STREET
EDMONTON, ALBERTA, CANADA T6G 1K8
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
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On September 3, 1999, AltaRex Corp. (the "Company") issued a press
release announcing that the Company and Biomira Inc. have reached a settlement
with respect to issues which were the subject of litigation between the two
companies and have terminated such litigation. This press release is filed
herewith as Exhibit 99.1.
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
- ----------- -----------
99.1 Press Release dated September 3, 1999
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ALTAREX CORP.
By: /s/ Edward M. Fitzgerald
----------------------------------------
Name: Edward M. Fitzgerald
Title: President and Chief Financial Officer
Date: September 16, 1999
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EXHIBIT 99.1
AltaRex and Biomira Announce Settlement of Lawsuits
EDMONTON, ALBERTA, CANADA, September 3, 1999 - AltaRex Corp. (AXO:TSE) and
Biomira Inc. (BRA:TSE and BIOM:NASDAQ) today announced that they have reached a
settlement with respect to issues which were the subject of litigation between
the two biotechnology companies and have terminated such litigation. In February
1999, Biomira commenced legal action against AltaRex and certain individuals
affiliated with AltaRex asserting Biomira's ownership of an invention disclosed
in an international patent application filed by AltaRex. In March 1999, AltaRex
filed suit against Biomira seeking a declaratory judgement concerning the terms
of a license agreement between the companies and for certain breaches of
contract. The settlement announced today includes, in addition to the
termination of the respective lawsuits, the following:
The license agreement that was the subject of AltaRex's suit against Biomira has
been amended and restated to clarify certain terms of the agreement that had
given rise to issues raised by each of the parties.
Biomira has agreed to assign to AltaRex any interest Biomira might have in the
patent application that was the subject of Biomira's lawsuit against AltaRex.
AltaRex has granted to Biomira a royalty-free, non-exclusive license, if and
when this patent issues, in relation to antigen-based or idiotypic cancer
vaccines. This agreement will also extend to two additional antibodies, one of
which will be royalty-bearing to AltaRex.
AltaRex has paid, on behalf of Biomira, a C$4.2 million repayment of Biomira's
liability to Industry Canada, an agency of the Canadian government, under a 1991
contribution agreement. AltaRex will similarly fund a C$250,000 liability to the
Alberta Government, under a separate contribution agreement, upon successful
commercialization of OvaRex(TM) MAb, AltaRex's lead product candidate. Both
governments had financially supported research and development work at Biomira
and Biomira Research Inc. that ultimately principally benefited AltaRex. As a
result of the above, the Industry Canada agreement has been terminated.
"The settlement of these disputes now allows us to pursue the development of
OvaRex(TM) MAb for the treatment of ovarian cancer without the uncertainty
brought about by the matters which were the subject of the litigation,"
commented Richard E. Bagley, President and Chief Executive Officer of AltaRex.
"We are also pleased to have clarified with Biomira the terms of the license
agreement so that such matters should not be at issue between the companies in
the future."
"The resolution of the litigation is a win/win for both AltaRex and Biomira",
said Alex McPherson, MD, PhD, President and CEO of Biomira. "From Biomira's
perspective, we have saved several million dollars as a result of AltaRex's
funding of the repayments to Industry Canada and the Alberta Government. As
well, we have clarified our license agreement to the advantage of both parties,"
McPherson concluded.
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This settlement was facilitated by Dr. Robert W. Naismith, Chairman and CEO,
Genome Securities Inc. of Scranton, PA.
AltaRex Corp. is an emerging biotechnology company focused on research,
development and commercialization of unique antibody-based immunotherapeutics
for the treatment of late-stage cancers. The Company's products are based on its
unique proprietary platform technology, Anti-idiotype Induction Therapy
("AIT(R)"). The Company believes that its AIT(R) technology enhances the ability
of the human immune system to produce its own anti-tumor response. AIT(R)
products are developed to target specific antigens that are associated with
various cancers. The Company's most advanced product, OvaRex(TM) MAb for ovarian
cancer, is in two potentially pivotal Phase IIb clinical trials, while
BrevaRex(TM) MAb is in a Phase I study.
Biomira is a biotechnology company specializing in the development of innovative
therapeutic approaches to cancer management. The commitment to the treatment of
cancer currently focuses on the development of synthetic vaccines and novel
strategies for cancer immunotherapy. Biomira's lead product, THERATOPE(R)
vaccine, is currently in a Phase III trial for women with metastatic breast
cancer. The trial is being conducted in approximately 75 sites worldwide and
involves 900 evaluable patients, the largest trial for an immunotherapeutic
vaccine ever conducted. Biomira's second product, BLP25, recently entered a
Phase II trial for patients with non-small cell lung cancer.
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 factors include, but are not limited to
changing market conditions, completion of clinical trials, patient enrollment
rates, uncertainty of preclinical trial results, the establishment of new
corporate alliances, the timely development, regulatory approval and market
acceptance of the companies' products, and other risks detailed from
time-to-time in the companies' filings with the United States Securities and
Exchange Commission and Canadian securities authorities.
THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED
NOR DISAPPROVED OF THE INFORMATION CONTAINED
HEREIN.
###
AltaRex Contacts: Media Contact:
Edward M. Fitzgerald Gretchen L.P. Schweitzer or
Senior Vice President and Chief Megan Burling
Financial Officer Feinstein Kean Partners
(781) 672-0138 (617) 577-8110
Biomira Contacts: Investor Relations:
Edward Taylor Jonathan Fassberg
Vice President Finance and Administration The Trout Group
(780) 490-2806 (212) 477-9007
Bill Wickson Media Contact:
Public Relations & Special Assistant Brad Miles, BMC Communications
(780) 490-2818 (212) 477-9007 x17
