Source: EQS Group AG


DGAP-News: PAION AG / Key word(s): Contract

17.06.2014 / 16:18



  - R-Pharm to extend license territory by adding "MENA Region" (Middle
    East and North Africa)

  - EUR 1.5 million upfront payment

  - EUR 5.5 million in future milestone payments

  - Low double digit royalties 

  - As in Turkey TR-Pharm will manage the development and marketing
    approval process

Aachen (Germany), 17 June 2014 - PAION AG (ISIN DE000A0B65S3; Frankfurt
Stock Exchange Prime Standard: PA8), a Specialty Pharma Company, and
R-Pharm, Russia, today announced that they have extended their license
agreements for Remimazolam to include the "MENA Region" (Middle East and
North Africa).  TR-Pharm, based in Istanbul, an affiliate of Moscow based
Remimazolam licensee R-Pharm, will manage the development and marketing
approval process in the "MENA Region". R-Pharm entered into an exclusive
licence agreement for Russia (CIS) on October 30, 2013 and has extended its
license agreement for Remimazolam on 26 November 2013 to include Turkey.

PAION will receive an upfront payment in the amount of EUR 1.5 million,
potential regulatory and commercial milestone payments of up to EUR 5.5
million and low double digit royalties on net sales in the Territory.

TR-Pharm intends to market Remimazolam in all indications with the lead
indication anaesthesia and expects an earliest launch of Remimazolam in

Dr. Wolfgang Söhngen, Chief Executive Officer of PAION AG, stated: " This
is a logical step in our "String of Pearls Strategy" reflecting the
increased value of Remimazolam due to recent developments. We trust the
vast experience of our TR-colleagues to manage these regions to our mutual
benefit. We appreciate the great confidence of (T)R-Pharm in Remimazolam
and that we will now be involved in this exciting growth region."

"R-Pharm is delighted and honored to further expand its license territory
for Remimazolam to Middle East and North Africa. This move is a clear sign
of growing mutual trust established between Paion and R-Pharm during
Remimazolam cooperation. We believe that this deal will further strengthen
international presence for R-Pharm - with the help of our colleagues at
TR-Pharm", said Vasily G. Ignatiev, CEO of R-Pharm.

"TR-Pharm is a licensee of all R-Pharm products. The company aims to
manufacture and commercialize all new and innovative medicines for Turkey
and MENA Countries with recognizable acumen in pharma business. In addition
the company enters mutually beneficial business development partnerships
with start-up, local and multinational pharmaceutical companies aiming to
achieve reliable targets with ownership, quality and to common
expectations", said Tuygan Goker, President of TR-Pharm.


About Remimazolam
Remimazolam is an innovative short-acting general anaesthetic/sedative. Due
to its short duration of action and good controllability, it has a
preferable efficacy and safety profile relative to other currently marketed
anaesthesia compounds. The rapid offset of Remimazolam's effect is due to
its metabolism by tissue esterase enzymes that are widely distributed
throughout the body.

Remimazolam has potential in three indications:
  - Procedural sedation 

  - General anaesthesia 

  - ICU sedation

Remimazolam is available for licensing outside Japan, China, Russia (CIS),
Turkey and the "MENA Region", Canada as well as South Korea, where the
compound is partnered with Ono Pharmaceutical, Yichang Humanwell, R-Pharm,
Pendopharm and Hana Pharm.

PAION AG is a publicly-listed Specialty Pharma company headquartered in
Aachen, Germany with a second site in Cambridge, UK. The company has a
track record in developing hospital-based treatments for which there is
substantial unmet medical need. PAION AG is transforming its business model
from a pure development company to a specialty pharmaceutical company with
a focus on anaesthesia products to take advantage of the unique profile of
its main compound, Remimazolam.

About R-Pharm, TR-Pharm
R-Pharm is a Russian private pharmaceutical company with focus on hospital/
specialty care, founded in 2001. Turnover in 2013 was over 1.8 bn USD.
R-Pharm has over 2800 employees and covers the entire territory of Russia
and CIS. The company is involved in research and development,
manufacturing, marketing, sales and distribution of innovative
pharmaceutical and biotech products.
TR-Pharm is R-Pharm's affiliated company headquartered in Istanbul, Turkey
aiming to launch innovative products, in Turkey and MENA, with a vision of
constructing a biotech production facility in line with the incentive plan
announced by the Turkish Government.

Ralf Penner
Director Investor Relations / Public Relations
Martinstrasse 10-12
52062 Aachen - Germany
Phone: +49 241 4453-152

Anna Voronina
Head of Public Relations
Russian Federation
10, Testovskaya st., 123317, Moscow
Phone: +7-495-956-79-37 (2110)
Mob: +7-925-804-16-72

This release contains certain forward-looking statements concerning the
future business of PAION AG. These forward-looking statements contained
herein are based on the current expectations, estimates and projections of
PAION AG's management as of the date of this release. They are subject to a
number of assumptions and involve known and unknown risks, uncertainties
and other factors. Should actual conditions differ from the Company's
assumptions, actual results and actions may differ materially from any
future results and developments expressed or implied by such
forward-looking statements. Considering the risks, uncertainties and other
factors involved, recipients should not rely unreasonably upon these
forward-looking statements. PAION AG has no obligation to periodically
update any such forward-looking statements to reflect future events or

End of Corporate News


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Language:    English                                               
Company:     PAION AG                                              
             Martinstr. 10-12                                      
             52062 Aachen                                          
Phone:       +49 (0)241-4453-0                                     
Fax:         +49 (0)241-4453-100                                   
ISIN:        DE000A0B65S3                                          
WKN:         A0B65S                                                
Listed:      Regulierter Markt in Frankfurt (Prime Standard);      
             Freiverkehr in Berlin, Düsseldorf, Hamburg, München,  
End of News    DGAP News-Service  
274078 17.06.2014