BLSI Boston Life Sciences (MM)

Company gains sole responsibility for Cethrin development HOPKINTON, Mass., March 27 /PRNewswire-FirstCall/ -- Boston Life Sciences, Inc. (NASDAQ:BLSI), a biotechnology company focused on diagnostic and therapeutic products for central nervous system disorders, announced today that it has paid the final $7.5 million license fee installment for Cethrin. Under the previously disclosed exclusive, worldwide license with BioAxone Therapeutic Inc. of Montreal, Canada, BLSI assumes development and commercialization of Cethrin, as well as other specified compounds subject to the license, to treat acute spinal cord injury (SCI) and other serious central nervous system disorders. In addition to the up-front license fee now paid, the license provides for possible performance milestones, and if approved, on- going royalties based on sales of Cethrin. "Since we announced the licensing of Cethrin in January, we have been working closely with BioAxone's team to facilitate an orderly transfer of the technology, pre-clinical and clinical data, clinical materials, regulatory documents and a host of critical clinical site and vendor relationships, as well as continuation of the monitoring of the ongoing Phase I/IIa clinical study in acute spinal cord injury. Payment of this final license fee installment enables us to assume full responsibility for the Cethrin program from here forward and to pursue our clinical development and commercial goals for the product" said Mark Pykett, the Company's President and Chief Operating Officer. About Cethrin Cethrin is a recombinant protein drug intended to facilitate the re-growth of axons during the critical period immediately after a major injury to the spinal cord. Following an SCI, about two-thirds of patients undergo decompression/stabilization surgery. In this surgery, Cethrin is delivered in a single dose directly onto the dura mater of the injured region of the spinal cord without the need for further invasive procedures. Positive interim results from a Phase I/IIa clinical trial with Cethrin were recently reported. The primary endpoint of the open-label trial was to demonstrate the safety and tolerability of Cethrin in patients who have suffered a complete cervical or thoracic spinal cord injury. A total of 37 patients was enrolled at nine centers in the US and Canada at Cethrin doses between 0.3 mg and 6.0 mg. Results from a six-week follow up indicated the treatment was safe and well tolerated. The study also had an efficacy component based on the American Spinal Injury Association's (ASIA) scale for assessment of sensory and motor function in patients. The reported interim data indicate that, after six weeks, 31 percent of patients recovered some sensory and/or motor function below the level of their injury and improved from a complete ASIA A injury to a less severe injury on the ASIA scale. The U.S. Food and Drug Administration (FDA) has designated Cethrin as an "Orphan Drug". The Company believes that this designation could provide BLSI considerable strategic advantages. Orphan Drug designation gives the Company seven-year market exclusivity after FDA approval, waives select fees and streamlines the requirements for clinical development, potentially helping to accelerate the approval process and reduce costs. Orphan Drug designation also provides certain tax advantages. There are approximately 11,000 new cases of SCI each year in the US. The average age of injury is 38. The estimated health care and living costs that are directly attributable to SCI vary greatly according to severity of the injury. The National Spinal Cord Injury Statistical Center estimates that the direct lifetime care costs for a patient with the most-severe injury and complete loss of function below the injury site is $2.9 million. That figure is dramatically reduced for people who have partial function, with current estimates in the $650,000 range. Restoring even limited function to those who otherwise would have complete loss of function could reduce total medical costs by millions of dollars each year and dramatically improve the quality of life for patients and their families. About Boston Life Sciences, Inc. Boston Life Sciences, Inc. (BLSI) is engaged in the research and clinical development of diagnostic and therapeutic products for central nervous system (CNS) disorders. ALTROPANE(R) molecular imaging agent is in Phase III clinical trials for the diagnosis of Parkinsonian Syndrome (PS) and Phase II clinical trials for the diagnosis of Attention Deficit Hyperactivity Disorder (ADHD). The company's research and pre-clinical CNS programs include Inosine for the treatment of stroke, a DAT blocker for the treatment of Parkinson's disease, and a second generation technetium-based molecular imaging agent for PS and ADHD. BLSI's current research collaborations include Harvard Medical School and Children's Hospital Boston. Safe Harbor The foregoing release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward- looking statements include statements regarding Boston Life Sciences' future expectations, beliefs, intentions, goals, strategies, plans or prospects regarding the future, including the Company's licensing arrangement with BioAxone, including the development and commercialization of Cethrin, the prospects of the Company's CNS therapeutics program, the Company's strategies to develop and commercialize axon regeneration technologies and the breadth of the Company's technologies and intellectual property portfolio. Forward- looking statements can be identified by terminology such as "anticipate," "believe," "could," "could increase the likelihood," "estimate," "expect," "intend," "is planned," "may," "should," "will," "will enable," "would be expected," "look forward," "may provide," "would" or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2006 filed with the Securities and Exchange Commission under the section "Risk Factors," as well as other documents that may be filed by Boston Life Sciences from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, the Company's actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. Boston Life Sciences is providing the information in this press release as of this date and assumes no obligations to update the information in this press release. BLSI Contacts: Meredith Patin - Investors 508-497-2360 ext. 239 Sharon Correia - Media 508-497-2360 ext. 224 DATASOURCE: Boston Life Sciences, Inc. CONTACT: Investors, Meredith Patin, +1-508-497-2360 ext. 239, Media, Sharon Correia, +1-508-497-2360 ext. 224, both of Boston Life Sciences, Inc. Web site: http://www.bostonlifesciences.com/

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