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PROTOX OBTAINS SHAREHOLDER APPROVAL FOR INVESTMENT BY WARBURG PINCUS OF UP TO $35 MILLION

^{Published on 2010-11-16 09:45:33 - Market Wire}
 

VANCOUVER, Nov. 16 /CNW/ - Protox Therapeutics Inc. (the "Company" or "Protox") (TSX: PRX), a leader in the development of receptor targeted fusion proteins, today announced that Protox's shareholders have approved the proposed investment by Warburg Pincus of up to $35 million.  At the special meeting of shareholders held this morning, the investment was approved by 100% of the votes cast by shareholders.  

The investment is being carried out under the terms of an investment agreement, as set out in management's Information Circular dated October 12, 2010, which was filed by Protox on the SEDAR website at [ www.sedar.com ].  The Investment Agreement provides for Warburg Pincus Private Equity X, L.P. and Warburg Pincus X Partners, L.P. (together "Warburg Pincus") to invest up to CDN $35 million in Protox, comprised of an initial tranche of $10 million, and an additional tranche of $25 million subject to the FDA granting a Special Protocol Assessment ("SPA"), for the treatment of benign prostatic hyperplasia ("BPH") prior to September 30, 2011. An SPA is a binding written agreement with the FDA that the proposed trial protocol design, clinical endpoints and statistical analyses are acceptable to support regulatory approval.

"The overwhelming support of the voting shareholders demonstrates the strength of Warburg Pincus in the Life Sciences industry," said Dr. Fahar Merchant, President & CEO of Protox Therapeutics.  "We are excited to have Warburg Pincus as a partner to take the BPH program through to marketing authorization."

The first tranche is expected to close on or before November 23^rd 2010.  Upon closing of this first tranche, Drs. Jim Miller, Alex Giaquinto and Avtar Dhillon will resign from the Board and will be replaced by three Warburg Pincus nominees: Mr. Jonathan Leff, Dr. Nishan de Silva, along with Dr. Lars Ekman, who will assume the Chairmanship of the Protox Board. Mr. Frank Holler, the chair since 2003 will remain on the Board as will Mr. Jim Heppell and Dr. Jack Geltosky. An additional independent designate acceptable to the Company and Warburg Pincus as well as an additional Warburg Pincus designee will also be appointed to the Board within 90 days of the first closing.  

About Warburg Pincus

Warburg Pincus is a leading global private equity firm. The firm has more than $30 billion in assets under management. Its active portfolio of more than 110 companies is highly diversified by stage, sector and geography. Warburg Pincus is a growth investor and an experienced partner to management teams seeking to build durable companies with sustainable value. Founded in 1966, Warburg Pincus has raised 13 private equity funds which have invested more than $35 billion in approximately 600 companies in more than 30 countries. The firm has offices in Beijing, Frankfurt, Hong Kong, London, Mumbai, New York, San Francisco, São Paulo, and Shanghai. For more information, please visit [ www.warburgpincus.com ]

About Protox

Protox Therapeutics is a leader in advancing novel, receptor targeted therapeutic fusion proteins. Two drug candidates derived from the company's INxin™ and PORxin™ platforms are in clinical development.  Protox's lead program, PRX302 (PORxin), achieved positive results from its Phase 2b placebo controlled trial called TRIUMPH, to treat benign prostatic hyperplasia (BPH or enlarged prostate). Protox has partnered with Kissei Pharmaceuticals for the development and commercialization of PRX302 in Japan. PRX321 (INxin) is being developed for the treatment of various cancers and has received Fast Track Designation and Orphan Drug Status from the US FDA and EMEA for the treatment of primary brain cancer. For more information, please visit [ www.protoxtherapuetics.com ]

Certain statements included in this press release may be considered forward-looking. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements, and therefore these statements should not be read as guarantees of future performance or results. Such statements include those about the proposed investment in Protox by Warburg Pincus and the changes to the board of directors of the Company.  All forward-looking statements are based on Protox' current beliefs as well as assumptions made by and information currently available to Protox and relate to, among other things, anticipated financial performance, business prospects, strategies, regulatory developments, market acceptance and future commitments. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.  Due to risks and uncertainties, including the risks and uncertainties identified by Protox in its public securities filings; actual events may differ materially from current expectations. Protox disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.