Intellipharmaceutics Announces Agreement to Acquire Real Property that Houses its Manufacturing, R&D and Office Facilities in Toronto, Ontario and Status of 5mg Strength of its Generic Focalin XR(R)
TORONTO, May 25, 2015 (GLOBE NEWSWIRE) -- Intellipharmaceutics International Inc. (Nasdaq:IPCI) (TSX:I)("Intellipharmaceutics" or the "Company"), a pharmaceutical company specializing in the research, development and manufacture of novel and generic controlled-release and targeted-release oral solid dosage drugs, today announced that it has agreed to purchase the land and building from which it conducts its operations at 30 Worcester Road, Toronto, Ontario (the "operating property") as well as the land and building of the adjoining property at 22 Worcester Road (the "adjoining property") for a combined purchase price of Cdn. $4,700,000. The operating property has been occupied by the Company since 2004 pursuant to a lease, and is approximately 25,000 sq. ft. The adjoining property includes a building of approximately 40,000 sq. ft. that is not currently occupied by the Company. The adjoining property is expected to provide the Company with space that will permit expansion of the Company's operations. There can be no assurance that the purchase transaction will be completed.
The Company's operating property has been its main site for over 10 years and comprises its management, R&D, manufacturing, quality control and analytical testing components. The United States Food and Drug Administration ("FDA") and Health Canada had previously granted "acceptable" classification to those aspects of the operating facility that permit the Company to be in a position to receive final approvals for certain drug applications and to permit manufacturing, testing, release and storage of drug products intended for commercial sales in the United States and Canada after any such approvals. No assurance can be given as to whether or when the FDA or Health Canada will approve any Intellipharmaceutics application for its product candidates, that its facility will continue to satisfy the requirements of the FDA or Health Canada, or that any of its product candidates will be successfully commercialized.
The purchase transaction is subject to various closing conditions, including the Company obtaining financing that is satisfactory to the Company, and the property owner obtaining a municipal severance approval necessary for the transfer of the properties. Prior to entering into the agreement to acquire the properties, in order to ensure continuity of use of its operating property in the event the acquisition was not consummated, the Company also recently exercised its right to renew its lease of the operating property for a term of five years to November 2020, beyond the expiry of the current term ending November 30, 2015.
"I am very pleased we have taken these steps to secure the continued use of our existing operating facilities. In addition, if the acquisition transaction proceeds, the acquisition of the adjoining property will accommodate our anticipated growth requirements given the numerous product candidates of the Company pending regulatory approval," stated Dr. Isa Odidi, the Company's Chair and CEO.
Separately, the Company advised that a final FDA approval has not yet been issued to the Company for the 5 mg strength of its generic dexmethylphenidate generic of Focalin XR®. Although the Company has not received any indication from the FDA of a deficiency in its application for approval of the 5 mg strength, the Company has no further information as to when or if such final approval will be granted by the FDA.
, .
Expanding to start a manufacturing facility? Was hoping for an approval on the 5mg
