Champions Biotechnology, Inc. Acquires Biomerk, Inc.
Arlington, VA – May 21, 2007 – Champions Biotechnology, Inc. (OTC Bulletin Board:CSBR), announced today that it has entered into an agreement and plan of merger with Biomerk, Inc., a private biotechnology company. Champions Biotechnology will issue 4,000,000 restricted shares of its common stock to acquire ownership of Biomerk.
Biomerk is focused on generating a novel preclinical platform of human cancer tumor immune-deficient mice xenografts (Biomerk Tumorgrafts™). Biomerk, Inc. was founded in 2006 and is owned by Dr. David Sidransky, a major shareholder in Champions Biotechnology. James Martell, President and CEO of Champions Biotechnology, has served as a consultant to Biomerk, providing advice regarding the management and administration of Biomerk. Biomerk Tumorgrafts™, unlike standard cell line derived xenografts, are implanted directly from primary human cancer tumors and never passaged in cell tissue culture. Biomerk believes that these xenografts more closely reflect human cancer biology and are more predictive of clinical outcome.
Biomerk has several patent applications relating to xenograft models used for identifying potentially active chemotherapeutic agents. Biomerk and Champions Biotechnology believe that pharmaceutical companies, as part of their drug discovery and post marketing efforts, are more receptive to utilizing services that are more predictive and that might provide for a faster and less expensive path for their drug approval. These services will allow for their screening of Biomerk Tumorgrafts™ to evaluate tumor sensitivity/resistance to various single and combination standard and novel chemotherapy agents.
Champions Biotechnology was interested in acquiring Biomerk since it believes that there are significant synergies between the know-how, expertise and proposed business of Biomerk and the biotechnology business embarked upon by Champions Biotechnology. Biomerk provides Champions Biotechnology with access to a novel preclinical technology platform. It also provides interim financing to cover current operating costs until longer term capital is obtained to finance
Champions Biotechnology’s future development, since Biomerk has approximately $475,000 cash.In addition, it has certain business relationships that Champions Biotechnology believes will be helpful in achieving its business plan.
“I am very pleased by this acquisition as we strongly believe in Biomerk’s potential in improving methods and approaches to cancer treatment” said James Martell, President and CEO of Champions Biotechnology. “This acquisition is Champions Biotechnology’s second acquisition since our decision in January 2007 to focus on building a biotechnology company from the ground up as our new business approach. We are actively engaged in pursuit of additional opportunities to grow and strengthen the company.”
After the acquisition, Champions Biotechnology will have 31,624,658 issued and outstanding common shares. Of those, 23,573,000 will be restricted common shares.