Iatra, Charterbridge decide to cease development of osteoporosis biomarker with Osteopharm

By E. Janene Geiss

Philadelphia, Jan. 6 - Iatra Life Sciences Corp. has received a report from Osteopharm Inc. saying the company has yet to identify a biomarker for osteoporosis as part of the development of a diagnostic test for the disease that Iatra has been developing under contract for Charterbridge Holdings International Ltd. since 2002.

Osteopharm said it would need an additional substantial investment to advance the development project sufficiently to confirm the identity of a osteoporosis marker, if any, according to a company news release.

Iatra stopped receiving contract revenue from Charterbridge due to the delays in the development of the diagnostic test, and, in turn, stopped making advances to Osteopharm, the major subcontractor to Iatra for the osteoporosis test commercialization project, the release said.

The Osteopharm report indicates that while it has made progress toward identifying potential biomarkers for osteoporosis, a definitive biomarker has not yet been identified.

Iatra said it has fully reviewed the report with Charterbridge, which has indicated that it does not intend to advance any more funding to Iatra for this project.

Iatra said it also has decided that it will not advance any more funding to Osteopharm for the project.

Iatra, however, said it holds a note receivable from Osteopharm in the amount of $9,492,816 (inclusive of interest to Oct. 31, 2005) that was written down to $1 in fiscal 2004.

In order to maximize any potential recovery from such note, Iatra said it will continue to assist Osteopharm in searching for additional funding and collaborative partners to complete the development project.

Iatra said it continues to hold its 22% royalty in any future worldwide sales or licensing of the osteoporosis diagnostic test.

The company said it is maintaining its significant reduction in general and administrative expenses while it evaluates other biotechnology development opportunities.

Charterbridge has confirmed its interest in evaluating similar contractual arrangements with Iatra for the development and commercialization of promising biotechnologies that Iatra may identify in the future, officials said.

Charterbridge also has agreed to loan to Iatra up to $600,000 for working capital, of which $200,000 has been advanced to date, officials said.

Iatra said it also is seeking other sources of funding for its future activities.

Iatra is a Toronto company dedicated to the acquisition, development and commercialization of promising and unique diagnostic, medical and health-related technologies throughout the world.

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