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Calgary, December 10, 2001 --- SYNSORB Biotech Inc. (“SYNSORB”) (TSE: SYB, NASDAQ: SYBB), today announced that its management and Board of Directors have decided to terminate further development of SYNSORB-Cd®, including its current phase III clinical trials for the prevention of recurrent C. difficile associated diarrhea.
This decision has been made after a thorough review of the available and emerging data from the trial and the overall prospects for obtaining market approval for the product. The data shows that the current phase III trials have an inadequate enrollment rate and an unacceptably high drop-out rate. These two factors are very likely to compromise the success of the program. During the past year, the company has taken a number of steps to improve enrollment and reduce drop-out rates, without adequate success.
As a result, these trials will be wound down in compliance with proper clinical practice and regulatory requirements. In order to conserve resources the Company will immediately reduce expenditures through a substantial reduction in staff and the elimination of costs associated with the development of SYNSORB-Cd®. The Company will retain a core management task force who will consider a number of strategic alternatives for the Company. Dr. Cox will remain CEO and the Board of Directors will remain unchanged.
“While I am of course deeply disappointed in the outcome of these trials, I believe that it is the most prudent course of action and one that preserves the most value for our shareholders,” said Dr. David Cox, President & CEO. “We will analyze the results from the 205 patients enrolled in the phase III trials to date. However, given the difficulties with enrollment and drop-outs it is unlikely that the results will be sufficiently positive to support further development. With a strong asset base and a significantly reduced burn rate, we believe that SYNSORB will be well positioned to pursue new alternatives in the current biotech market. “
As at November 30, 2001 SYNSORB’s assets included $7 million of cash and 6.3 million common shares of Oncolytics Biotech Inc., which as at the close of trading on December 10 had a market value of approximately $53 million. In addition, the Company owns a 30,000 sq. ft. manufacturing facility in Calgary, Alberta. As at November 30, the Company had total debt of approximately $6.9 million of which $1.9 million was classified as payable in the next twelve months. SYNSORB currently has approximately 39.7 million common shares outstanding.
While the Company is evaluating its strategic alternatives, SYNSORB will reduce its burn-rate to minimal levels. The Company plans to immediately reduce its workforce by approximately 50%, with further reductions planned once the Cd® trial is completely wound down.
Conference Call
SYNSORB will hold a conference call on, Tuesday, December 11th at 9:00 am [eastern time]. The Company would like to invite all to participate by dialling or 1-. You will be put on hold until the conference call begins. A replay of the conference call will also be available by telephone from approximately 12:00 pm (Eastern time) on December 11th through December 18, 2001. To access the replay, dial or and enter reservation number 994690.
A live audio webcast of the conference call will be available through www.financialdisclosure.ca. Please connect to this website at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be needed to hear the webcast. A replay of the webcast will be available for 90 days starting on December 12th, at www.financialdisclosure.ca and synsorb.com.
Shares of SYNSORB Biotech Inc. trade on the Toronto Stock Exchange in Canada (symbol “SYB”) and on NASDAQ in the United States (ticker “SYBB”).
synsorb.com
This release contains certain forward-looking statements which involve known and unknown risks, delays, uncertainties and other factors not under the Company’s control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include actions by the FDA/HPB, the Company’s ability to reduce expenditures, the timing of the wind down of clinical trials, the uncertainty of future alternatives available to the Company, the future value of the Company’s assets and those factors detailed in the Company’s registration statement on Form 20 F filed with the Securities and Exchange Commission.
For further information contact:
Dr. David J. Cox
President & CEO
SYNSORB Biotech. Inc
Cindy Gray
Manager, Investor Relations
SYNSORB Biotech Inc.
Tel:
Fax:
Jason Hogan
Tel: ex222
Fax:
FOR FURTHER INFORMATION PLEASE CONTACT:
SYNSORB Biotech Inc.
(FAX)