OxyFile #436
LifeTECH Strategic Alliance with Pall Corporation Not Completed Research & Development Cooperation to Continue with Pall Alternative Alliance Targeted Over the Coming Months TORONTO, May 7 1997 - LifeTECH Corporation today announced that it will not complete its Strategic Alliance with Pall Corporation, East Hills, New York. As previously announced on February 4, 1997, LifeTECH and Pall signed a Letter of Intent specifying a period ending on April 15, 1997 to complete due diligence and execute a definitive agreement granting Pall the exclusive rights to manufacture and market blood collection sets incorporating LifeTECH's proprietary Sterinetics System for the inactivation of viruses and bacteria. While both companies have agreed not to pursue a Strategic Alliance at this time, discussions since April 15, 1997 have focused on future relationships. Walter J. Dermott, President & CEO made the announcement, saying "We are obviously disappointed that a Strategic Alliance has not been completed with Pall. Pall concluded that the stage of our product development did not fit within their strategic timeframe. Pall and LifeTECH have agreed to continue to work together on the development of the LifeTECH technology, with Pall providing their blood collection sets, additive solutions, filters and manufacturing expertise on an on-going basis. Pall and LifeTECH will continue to evaluate opportunities for their combined technologies to improve the safety of the global blood supply." Mr. Dermott continued "We remain confident in the commercial potential of the Sterinetics System. LifeTECH will now aggressively accelerate on-going discussions with other major participants in the human red blood cell collection marketplace, both in the United States and abroad. The European community is of special interest, since their blood market represents 33% of the global market, their regulatory approval process is faster, and European research into oxidative stress is more advanced. LifeTECH will also pursue other major market segments - fractionated products, apheresis blood collection and animal sera/tissue culture. The universal applicability of our technology to all blood products - both human and animal - creates multiple opportunities to commercialize our technology. Our goal is to complete an alliance and/or collaboration over the coming months."