Paladin Labs Inc.: Paladin Labs Inc. Announces Sale of Antibody Platform to Quest PharmaTech

Published in House and Home on Wednesday, September 30th 2009 at 10:26 GMT by Market Wire
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MONTREAL, QUEBEC--(Marketwire - Sept. 30, 2009) - Paladin Labs Inc. (TSX:PLB), a leading Canadian specialty pharmaceutical company, announced today that it has sold a portfolio of immunotherapeutic antibodies, related intellectual property, and other assets (the AIT^® technology) to Quest PharmaTech (TSX VENTURE:QPT)("Quest"), an Edmonton-based biotechnology company that is developing new pharmaceutical products for oncology and other indications.

Under the terms of the agreement, Paladin will receive up to 5 million shares of Quest, an undisclosed up-front cash payment and royalties on future revenues.

"We are pleased to have found a knowledgeable developer of oncology products to move this technology forward and believe that this technology will have a greater chance of success in the hands of one of the original inventors. As a result of this transaction, we will be an important shareholder of Quest, and through royalties stand to participate in the future success of this technology," commented Joe Walewicz, VP Special Projects for Paladin Labs Inc.

Paladin continues to develop its Chimigen^® Platform Technology for Hepatitis B, Hepatitis C and other indications, and we are pleased to announce that the ViRexx team, under Dr. Rajan George, will continue its Research and Development under the name "Paladin Biosciences, a division of Paladin Labs Inc."

About Paladin Labs Inc.

Paladin Labs Inc., headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian market. With this strategy, a focused national sales team and proven marketing expertise, Paladin has evolved into one of Canada's leading specialty pharmaceutical companies. Paladin's shares trade on the Toronto Stock Exchange under the symbol PLB. For more information about Paladin, please visit the Company's web site at [ www.paladinlabs.com ].

About Quest PharmaTech Inc.

Quest is a publicly traded, Alberta-based pharmaceutical company committed to the development and commercialization of new pharmaceutical products. It is developing a series of products for the treatment of cancer and dermatological conditions based on its unique photodynamic and sonodynamic therapy platforms.

This press release may contain forward-looking statements and predictions. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the forward-looking statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions that these assumptions regarding the future events, many of which are beyond the control of the Company and its subsidiaries, may ultimately prove to be incorrect. Factors and risks, which could cause actual results to differ materially from current expectations, are discussed in the annual report as well as in the Company's Annual Information Form for the year ended December 31, 2008. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information or future events and except as required by law. For additional information on risks and uncertainties relating to these forward-looking statements, investors should consult the Company's ongoing quarterly fillings, annual report and Annual Information Form and other fillings found on SEDAR at [ www.sedar.com ].