London, Ontario (July 28, 2011): Critical Outcome Technologies Inc. (COTI) (TSX Venture: COT) announcedtoday that it has initiated synthesis on compounds from COTI’s acute myelogenous leukemia (AML) program,representing a positive step forward in the development of these promising new drug candidates.
“We are delighted to announce an important milestone in the development of our AML program,” said Dr.Wayne Danter, CEO. “The synthesis of our third major drug discovery program represents further validation ofCHEMSAS® as a drug discovery engine and will provide an additional valuable asset that can be licensed topartners for further development.”
Following the completion of a successful private placement in May 2011, COTI announced its intention to use aportion of the funds to advance its AML program. Also as previously announced, this program is movingforward with funding from the National Research Council of Canada Industrial Research Assistance Program.
COTI plans to begin preclinical testing of at least one of these compounds upon completion of synthesis and toaggressively pursue licensing opportunities based upon the scientific results of the program. COTI’s AMLprogram is protected by a number of issued US, European and Canadian patents.
About Acute Myelogenous Leukemia
AML is the most common type of acute leukemia with more than 13,000 new cases and 8,950 deaths occurringeach year in the US alone. According to the World Health Organization there are approximately 250,000 newcases of leukemia annually worldwide. AML accounts for 43% of these cases. The global AML therapeuticsmarket was valued at $174m in 2009. It is expected to grow to $329m by 2016.
COTI’s AML program was designed to target several important cell‐signaling enzymes called kinases. Theseenzymes form a cellular network responsible for a large number of important functions including cell division,cell growth and development, metabolism and cellular immunity. Approaches that are more traditional havesought to discover and develop “clean” drugs that have very good efficacy against a single cell‐signaling target.
COTI believes that this is a sub‐optimal approach since most cancers, including leukemia, have multiple genemutations and therefore multiple abnormal gene products like kinases. Unfortunately, the adaptive geneticmachinery of cancer cells quickly finds an alternative pathway or pathways around the effects of single kinaseinhibitors. As a result, resistance to chemotherapy emerges early and often. In AML, the most lethal adultleukemia, up to 40% of cases will have mutations in a particular gene known as FLT3. An abnormal geneproduces an abnormal or absent cellular protein. However, in most cancers including leukemia, multiple genemutations result in multiple kinase abnormalities. It is for this reason that COTI has undertaken an AML drugdiscovery project intentionally targeting multiple kinases that are important in leukemia. COTI’s multi‐kinaseinhibitors have also been designed to be orally available, have low toxicity, and potentially synergize with otherfirst line agents.
Notice to Readers
Information contained in this press release may contain certain statements which constitute “forward‐lookingstatements” within the meaning of the Securities Act (Ontario) and applicable securities laws. For example,the statement “The global AML therapeutics market was valued at $174m in 2009. It is expected to grow to$329m by 2016.” is a forward‐looking statement and was sourced from GlobalData, an industry marketresearch group. This statement conveys the projected size of the market based upon an independent researchsource, but COTI is not in a position at this time to determine what share of the market, if any, the successfuldevelopment of its AML compounds might obtain. Forward‐looking statements, by their nature, are notguarantees of future performance and are based upon management’s current expectations, estimates,projections and assumptions. Risks that could impact on these forward‐looking statements are outlined in theCompany’s annual information form. Management of COTI considers the assumptions on which theseforward‐looking statements are based to be reasonable, but as a result of the many risk factors, cautions thereader that actual results could differ materially from those expressed or implied in these forward‐lookingstatements.
About Critical Outcome Technologies Inc. (COTI)
COTI is a leading‐edge biotechnology firm specialized in assisting pharmaceutical, biotechnology andtherapeutic companies with the accelerated discovery of small molecules to enable new drugs to be broughtto market in a more cost effective, efficient and timely manner.
COTI’S proprietary technology CHEMSAS®, utilizes a series of predictive computer models to identify compounds most likely to be successfully incorporated in disease‐specific drug discovery, as well assubsequent optimization and preclinical development. These compounds are targeted for a variety ofdiseases, particularly those for which current treatments are either lacking or ineffective.
For more information, visit www.criticaloutcome.com or contact:
Michael Barr
Vice President of Business Development and Marketing
519‐858‐5157
mbarr@criticaloutcome.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of theTSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
