February 27, 2008
Letter from the Chairman
I want to take this opportunity to update you on InNexus Biotechnology’s progress since my September 2007 letter. The science of drug development, the FDA approval process and the demand for earlier stage products is changing. In just the past few years, our industry has increased its demands and expectations from biotechnology companies. These demands, especially from large biotechnology and pharmaceutical companies, have created an opportunity for us to deliver products created from our DXL™ technology and beyond.
At InNexus, we have a common thread that weaves us together – The belief that if you want to lead, you have to create – and we believe that we are doing that and more. Our team is committed and energized. It leads, it creates and our focus over the next year will be to achieve the full commercial potential of DXL™ and to create a rich product portfolio based upon science that speaks for itself. Our product portfolio will be our best advocate to large biotechnology and pharmaceutical partners.
The key test of our business will be in the creation of valuable therapeutic products and the making of sound economic decisions. We are confident that InNexus will pass this test with high marks. This past year’s results demonstrate our ability to grow and strengthen our strategic relations. We continue to advance our DXL™ pipeline with two preclinical candidates and are confident that we have the ability to meet future projected market growth for our platform technology of DXL™.
Expanding focus for drug development opportunities
InNexus is building its scientific reputation on a unique understanding of antibodies - their augmentation and enhancement - and how best to target them toward diseases and markets. This past year, as the result of our focused approach, the company has filed numerous patent applications to protect its property and ability to test and monetizing candidates at the preclinical development stage. While continuing to grow the company’s expertise, we have also expanded into new production areas to offer other DXL™ based technologies to possible partners.
Pipeline
The company’s two compounds in preclinical development are 1) DXL625 (CD20) for the treatment of non-Hodgkin’s lymphoma (NHL) and 2) DXL702 (HER2/neu), for the treatment of breast cancer.
DXL625 (CD20) will serve the same market as Rituxan™. Genentech, Inc. and Biogen IDEC developed Rituxan™, which generates billions of USDs in annual sales.
DXL702 (HER2/neu), will serve the same market as Herceptin™, which was also developed by Genentech, Inc. and is also a multi-billion dollar success.
We are advancing both of our compounds toward the Food and Drug Administration with preclinical programs. We are determined to show market leadership by bringing these new products to the marketplace.
Leading Indicators and Our Future
Our joint-venture relationship with Royalty Pharma has given us the opportunity to launched two preclinical products, each competing in large marketplaces. We have assembled the leading experts to plan and execute our success. We will continue to meet the challenge.
Recent Additions to Board of Directors and Scientific Advisory Board
Dr. J. Donald Capra was appointed to the InNexus Board of Directors in January 2008. Dr. Capra and is also Chairman of our Scientific Advisory Board. Dr. Capra is currently President Emeritus of the Oklahoma Medical Research Foundation having served as President for nine years.
We expanded our Scientific Advisory Board in December 2007 and February 2008 to ten persons with the additions of Dr. Judith James who is the Lou Kerr Chair in Biomedical Research at the Oklahoma Medical Research Foundation, and Dr. Ronald Levy who is Chief of Stanford University’s School of Medicine Oncology Division.
Mr. Laurence Luke, a cancer survivor, is a member of the InNexus Board of Directors and is the past President of the Mountain States Chapter of the Leukemia & Lymphoma Society. We look forward to the day when our DXL 625 (CD20) product for the treatment of non-Hodgkin’s lymphoma will benefit the life of Mr. Luke and all people who are afflicted with this disease.
Gaining Industry Recognition and Important Publications
We have seen outstanding media coverage and we have been spotlighted to the biotech/pharma industry in leading industry publications including Pharmaceutical Formulations and Quality, Innovations in Pharmaceutical Technology, Oncology News
International, PharmVoice, Drug Delivery Technology, to name a few. The company has also been recognized in Excellence in Biosciences and it has received numerous awards. In 2007, the TSX included the company in its Venture Top 50 companies from a list of over 3,900 companies. In its own industry, InNexus has shown its leadership. TSX ranked the company 2nd in the TSX Venture Top 10 biotechnology and life sciences companies.
We appreciate the strong support and encouragement we have received, and we are determined to build on our success as we look to the future. We have shown leadership and creativity. On behalf of our team, I would like to thank you for your continued interest and support as we all look forward to an even more productive 2008.
Best wishes,
Jeff Morhet
Chairman and Chief Executive Officer
About InNexus
InNexus is a drug development company commercializing the next generation of monoclonal antibodies based on its DXL™ technology, which improves the potency of existing antibody products while opening new markets and disease applications. DXL™ antibodies utilize unique, novel and patented methods and technologies of InNexus.
InNexus is headquartered in British Columbia with principal management based in Scottsdale, Arizona on the campus of Mayo Clinic and has its own in-house developmental facilities. These development resources provide validation of protein and peptide discoveries, enabling InNexus (and its strategic partners) to advance novel drug therapeutics and diagnostics. To learn more about InNexus, please visit www.ixsbio.com.
This news release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding future drug development activities or anticipated products, anticipated future revenues, benefits or advantages, and the future plans and objectives of the Company, that involve inherent risks and uncertainties and are subject to factors, many of which are beyond the Company's control, that may cause actual results or performance to differ materially from those currently anticipated in such statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
Contact:
Jeff Morhet, Chairman and Chief Executive Officer
InNexus Biotechnology Inc.
480-862-7500
www.ixsbio.com
