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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 May, 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
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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 May 13, 1999, Altarex Corp. (the "Company") issued a press release
announcing that (i) the Company had entered into agreements under which
associates of Purdue Pharma L.P. ("Purdue") plan to purchase C$5 million of the
Company's common stock in the Company's current equity offering, and (ii) the
Company has granted Purdue a 180-day option to develop and commercialize two of
the Company's products. A copy of this press release is attached hereto as
Exhibit 99.1.
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION
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99.1 Press Release dated May 13, 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
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Name: Edward M. Fitzgerald
Title: Senior Vice President and Chief
Financial Officer
Date: May 17, 1999
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Exhibit 99.1
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Contact:
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Michael Friedman Edward M. Fitzgerald Gretchen L. P. Schweitzer
Purdue Pharma L.P. AltaRex Corp. Feinstein Kean Partners
203-854-7290 781-672-0138 617-577-8110
[email protected] www.fkpi.com
www.altarex.com
FOR IMMEDIATE RELEASE
ALTAREX GRANTS PURDUE PHARMA L.P. AN OPTION TO LICENSE TWO PRODUCTS IN A
POTENTIAL DEAL WORTH US$100 MILLION OVER NEXT THREE YEARS
-- ASSOCIATES OF PURDUE TO COMMIT C$5 MILLION TO ALTAREX FINANCING -
WALTHAM, MA, USA, AND NORWALK, CT, USA MAY 13, 1999 - ALTAREX CORP. (TSE:AXO)
AND PURDUE PHARMA L.P. today announced agreements under which associates of
Purdue will purchase, subject to regulatory approval, C$5 million of Common
Stock as part of AltaRex's current equity offering. In addition to Purdue's
equity investment, AltaRex has granted Purdue a 180-day option to an exclusive
worldwide license to develop and commercialize OvaRex(TM) and BrevaRex(TM) MAbs.
If the option is exercised, and Purdue successfully develops these products,
Purdue and its associates could spend in excess of US$100 million over the next
three years in research and development as well as milestone payments. AltaRex
would receive future royalty payments based on any product sales.
Purdue's equity investment brings total gross proceeds of AltaRex's equity
offering to approximately C$19.3 million and utilizes the over-allotment option
provided to AltaRex's agents, First Marathon Securities Limited and HSBC James
Capel Canada Inc.
OvaRex(TM) and BrevaRex(TM) MAbs are based on AltaRex's proprietary
antibody-based immunotherapeutic approach known as Anti-idiotype Induction
Therapy or AIT(R). The Company has obtained U.S. FDA Orphan Drug status and Fast
Track designation for its lead product, OvaRex(TM) MAb, currently in two
potentially pivotal phase IIb trials for late-stage ovarian cancer. BrevaRex(TM)
MAb is currently in a phase I study for cancers that express the MUC1 tumor
associated antigen including multiple myeloma, lung, prostate, pancreatic and
breast cancers.
"These agreements serve as validation of the potential of our antibody
technology to address major unmet clinical needs in the field of cancer
therapy," remarked Richard Bagley, President and CEO of AltaRex. "With the
recent purchase of the Cytogen facility in New Jersey, Purdue Pharma L.P. and
its associated companies have the resources to continue the development and
--more--
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...page 2, May 13, 1999
production of OvaRex(TM) and BrevaRex(TM) MAbs throughout clinical development
to potential commercialization. In addition, Purdue and its associates have an
impressive track record in oncology sales, particularly with their painkilling
product OxyContin(R) tablets, which is co-promoted with Abbott, whose sales are
expected to exceed U.S. $500 million in 1999."
"AltaRex's advanced antibody technologies are ideal for Purdue as it moves
aggressively into the field of novel oncology therapeutics. Both OvaRexTM and
BrevaRexTM MAbs will complement Purdue's existing proprietary antibody
technologies and capabilities resulting from the acquisition of the Cytogen
facility and our efforts to build world-class biologics and oncology
businesses," commented Michael Friedman, Vice President of Purdue Pharma L.P.
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 has recently entered a phase I study.
Additional information about AltaRex clinical trials can be found on its web
site at www.altarex.com or on the CenterWatch web site at www.centerwatch.com.
Additional information about ovarian cancer can be found at
www.corrineboyerfund.org and at www.ovarian.org.
Purdue Pharma L.P. and its associated companies comprise a privately-held,
worldwide pharmaceutical network with development, manufacturing, marketing and
distribution capabilities. The companies currently maintain a leading presence
in the field of pain management with their products OxyContin(R) (oxycodone
hydrochloride controlled-release) tablets and MS Contin(R) (morphine sulfate
controlled-release) tablets. The network also includes a biologic therapeutics
business, Purdue BioPharma L.P., which is headquartered in Princeton, N.J. and
is focused on the development of antibody-based therapeutics and vaccines.
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 Company's products, 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. There can be no assurance as to
the outcome of the Company's litigation with Biomira Inc. or that the Company
will complete its announced financing.
THE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR
DISAPPROVED OF THE INFORMATION CONTAINED HEREIN.
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