UGNE News Unigene to Target Partnering and Ther

BOONTON, N.J., Sept. 26, 2012 /PRNewswire/ -- Unigene Laboratories, Inc. (OTCBB: UGNE), today announced the Company has entered into a Forbearance Agreement and First Amendment to Amended and Restated Financing Agreement with affiliates of Victory Park Capital Advisors, LLC, dated September 21, 2012, whereby Victory Park Capital has loaned the Company $4 million and agreed to forbear from exercising certain rights due to designated events of default through September 21, 2013, subject to the terms and conditions of such agreement.

Ashleigh Palmer, Unigene's Chief Executive Officer, stated, "While the recent unexpected European Medicines Agency recommendation involving calcitonin and other events have seriously challenged the Company's turnaround, today's announcement clearly demonstrates that Victory Park Capital has not lost sight of Unigene's potential. In particular, we believe that the Company's proprietary Peptelligence™ technology, know-how and expertise represents the most clinically advanced and validated oral peptide drug delivery platform in the industry today."

"Following today's announcement, Unigene now has sufficient cash runway to maintain operations beyond the original VPC note maturity date and capitalize on potential value-building milestones realizable during the extended forbearance period. We continue to work on 14 feasibility studies that have the potential to convert into one or more revenue-generating licensing agreements. We now have the funds available to complete the toxicology program for UGP281, our lead proprietary anorexigenic peptide for the treatment of obesity, and subsequently prepare and file an Investigational New Drug Application with the FDA next year. This would allow the Company to begin human clinical testing in the event it is able to get additional funding. Additionally, Unigene is working diligently with Nordic Bioscience to advance UGP302 into human clinical testing as a treatment for Type 2 diabetes, and continues the active pursuit of partnering and funding opportunities for the advanced clinical development and commercialization of its Phase 2 oral PTH analog program."