Isotechnika entered a strategic investment and collaboration with Paladin Labs under which Paladin will provide Isotechnika with $7.0 million of cash upfront and $4.4 million in R&D funding during the next 12 months. Under the proposed plan, Isotechnika will own 81% of a new company, Isotechnika Pharma Inc., and Paladin will own 19%.

Isotechnika will focus its efforts on finding partnerships for the clinical development of voclosporin in the transplant indication, and expects to have the capital to fund operations until the anticipated milestones from Lux Biosciences are met.

“The combination of this financing and share reorganization provides Isotechnika shareholders with a solid balance sheet to deliver on key milestones and business objectives,” said Dr. Robert Foster, president and chief executive officer of Isotechnika. “We are pleased to be able to secure capital on favorable terms in such a difficult market, while retaining the rights to market voclosporin in the largest, most strategic markets. In the process we gain a strategic partner in Paladin Labs for key pharmaceutical markets, including Canada. We continue to look forward to milestone and royalty payments from our partners, Lux Biosciences and Atrium Medical.”

“We are pleased to partner with Isotechnika for the development and commercialization of voclosporin. With positive results from a recently completed Phase III trial in psoriasis, we intend to submit voclosporin for Canadian regulatory approval. We are also excited by the much larger market opportunity for voclosporin in the transplant indication. We look forward to participating with current Isotechnika shareholders in a new, well-funded company that will continue to develop voclosporin for the benefit of its shareholders,” stated Jonathan Ross Goodman, president and chief executive officer of Paladin Labs.

The transaction is expected to close in June of this year.