Michelle Garrett tests blood samples at Isotechnika's lab.
Isotechnika Pharma Inc. has announced changes in its executive offices and board Friday after its second-largest shareholder indicated it may increase its stake in the Edmonton-based drug developer.
It was unclear from a statement issued by Isotechnika whether that shareholder, ILJIN Life Science Co. Ltd. of South Korea, plans a takeover bid.
However, an Isotechnika director, Daniel Park, who is also executive vice-president of ILJIN, told the Isotechnika board that ILJIN was planning to "increase their level of control within the company."
As a result, Mr. Park has resigned as Isotechnika's chief business officer and, although he remains an Isotechnika director, he has agreed not to participate in any board discussions related to ILJIN or any other strategic alternatives the board may consider.
Last March, ILJIN announced it had raised its stake in the company to just under 14 per cent.
Meanwhile, Isotechnika said that as a result of "this verbal proposal" and Mr. Park's resulting resignation, company chief executive officer Robert Foster has relinquished his title of board chairman to Peter Wijngaard, a Swiss resident and vice-president at Medicines Co. (Schweiz) GmbH.
"This change is designed to allow Dr. Foster to continue to focus firmly on Phase 3 development activities of the company's leading product candidate, voclosporin, for the prevention of kidney transplant rejection, and to continue licensing opportunity discussions," the company said in a release.
Meanwhile, Isotechnika said there is no assurance that a discussion with ILJIN would materialize or result in a transaction.
"The company does not intend to disclose developments with respect to the contemplated proposal or the exploration of strategic alternatives unless and until its board of directors has approved a specific transaction," it said.
The company develops drugs to treat immune system diseases and to prevent organ rejection in transplants.