Paladin Labs Inc, a leading Canadian specialty pharmaceutical company, announced the closing of its strategic partnership with Isotechnika Pharma Inc for the commercialization of voclosporin, Isotechnika's next-generation calcineurin inhibitor, in Canada, Mexico, Central & South America, Israel and South Africa.

"Following successful phase-III results for voclosporin in psoriasis, we look forward to working with Isotechnika Pharma on the preparation and filing of a dossier for Canadian regulatory approval of voclosporin. In addition, as major shareholders in Isotechnika Pharma, we are very excited about the company's future," stated Jonathan Ross Goodman, president & CEO of Paladin Labs Inc.

"This agreement with Paladin Labs improves our capital base and brings on a well-regarded commercialization partner for important pharmaceutical markets," said Dr Foster, president & CEO of Isotechnika. "We will continue our efforts to secure a commercialization deal for voclosporin in the key markets of the US, Europe, and Asia, and we will work together with Paladin to identify and acquire additional late-stage assets to further broaden the pipelines of both companies."

Full details of this transaction were detailed in the May 7, 2009 press release and subsequent public filings of Isotechnika Inc. Under this partnership, Paladin paid $7 million cash to acquire cent per cent of Isotechnika Inc, cent per cent of Isodiagnostika Inc., 19 per cent of the shares of Isotechnika Pharma Inc (being 24,921,313 shares of Isotechnika Pharma) and has committed R&D funding of $4.35 million to Isotechnika Pharma over the next 12 months to further develop voclosporin. As a result of the transaction, Isotechnika Inc is a wholly-owned subsidiary of Paladin. Paladin acquired the shares of Isotechnika Pharma Inc in connection with the transaction and may trade in the securities of Isotechnika Pharma Inc from time to time for investment purposes and/or based on market conditions or other considerations.

In addition, as a result of this transaction Paladin's non-capital losses and investment tax credits available to offset future taxable income has increased by a minimum of $100 million.

Paladin Labs, headquartered in Montreal, Canada, is a specialty pharmaceutical company focused on acquiring or in-licensing innovative pharmaceutical products for the Canadian market.