Isotechnika amends deal with Paladin Labs

Isotechnika Pharma’s (TSX: ISA) wholly owned subsidiary, Isotechnika Labs, has amended its agreement with Paladin Labs (TSX:PLB) on the remaining stake in the revenue stream from the Isodiagnostika business, which was sold to Paladin in mid-2009.

Under the original deal, Isotechnika Labs was entitled to receive a revenue stream equivalent to 88% of the net profits of Isodiagnostika through to June 18, 2016.  The amendment involves a one-time upfront payment of $1.65 million, with an additional amount up to $350,000 payable by Jan. 31, 2011, based on Isodiagnostika sales in 2010.

“This amendment … allows Isotechnika Pharma to continue its focus on the development of our voclosporin programs for transplant and psoriasis, as well as our NICAM portfolio project,” CEO Dr. Robert Foster said in a statement.  “These programs will continue to drive the value of our company and this amendment with Paladin is a great source of immediate, non-dilutive working capital.”