YM BioSciences Inc., the cancer product development company, has entered into a binding agreement, to purchase DELEX Therapeutics Inc. (Mississauga, Canada), a private clinical stage biotechnology company developing inhalation delivered fentanyl products to treat cancer pain, pursuant to which DELEX will become a wholly-owned subsidiary of YM BioSciences.

DELEX is advancing AeroLEF, a proprietary technology for the treatment of acute and breakthrough pain, conditions that are common in cancer patients and underserved by existing technology. AeroLEF is an inhalation delivery system that delivers both free and liposomal encapsulated fentanyl, an opioid drug widely prescribed to treat cancer pain. This product has completed a Phase IIa trial with positive results and further efficacy trials in acute and cancer pain are planned for initiation in 2005.

David Allan, chairman and CEO of YM BioSciences said, "DELEX's late-stage product is an excellent fit within our cancer-focused portfolio, targeting the substantial population of cancer patients who experience severe pain. DELEX also comes with suitable resources to advance this product through the next proposed Phase IIb pain trial without requiring any additional cash investment by YM."

"AeroLEF has the prospect of being a best-in-class product in the multi-billion dollar pain market," Diana Pliura, CEO of DELEX said adding, "AeroLEF is the only product designed to provide real-time patient optimized pain relief during dosing and, through DELEX's proprietary ROSE-DS formulation technology, that can produce rapid onset of relief combined with extended relief - significant differentiators to competitive products in development."