WORCESTER, Mass., March 20, 2008 (PRIME NEWSWIRE) -- Generex Biotechnology Corporation (Nasdaq:GNBT), the leader in drug delivery for metabolic diseases through the inner lining of the mouth, today clarified the stance of Dr. Gerald Bernstein, the Company's Vice-President for Medical Affairs.
On March 14, 2008, the Company filed a Form 8-K with the SEC, together with a preliminary proxy statement in respect of the upcoming Annual Meeting of the Company's stockholders, indicating that Dr. Bernstein would not be standing for re-election to the Company's Board of Directors. As stated in the Form 8-K, the reason Dr. Bernstein has decided not to stand for re-election to the Company's Board is so that a majority of the members of the Board will continue to be "independent directors" (i.e. non-employee directors) following the Annual Meeting as required by SEC and NASDAQ rules.
As a consequence of the decision by Mr. Peter Amanatides, an independent director of the Company, not to stand for re-election to the Board, it is necessary for a non-employee director to stand down to preserve the Board's independent majority. As an employee of the Company and its Vice-President for Medical Affairs, Dr. Bernstein does not qualify as an independent director.
Dr. Bernstein will continue to serve as the Company's Vice-President for Medical Affairs. On March 10, 2008, the Board approved a three-year extension of Dr. Bernstein's employment contract with the Company to March 31, 2011.
"My decision to step down from the Board following the Annual Meeting has been motivated entirely by a desire to assist the Company with a matter of corporate governance compliance," said Dr. Bernstein. "I enthusiastically agreed to an extension of my employment contract with the Company and I affirm my unstinting support of Generex Oral-lyn(tm), particularly in light of the recent abandonment of inhaled insulin programs by some "big pharma" companies." Dr. Bernstein further stated that, "I believe that Generex Oral-lyn, which is not an inhaled insulin but is absorbed by the inner lining of the mouth, is poised to fill the void left by inhaled insulin. Our product is designed to offer a safe and convenient alternative to prandial insulin injections which can improve treatment compliance and quality of life for patients with diabetes."
Generex Oral-lyn, the Company's propriety oral insulin spray product, is presently in Phase III clinical trials at several sites around the world.
About Generex
Generex is engaged in the research, development, and commercialization of drug delivery systems and technologies. Generex has developed a proprietary platform technology for the delivery of drugs into the human body through the oral cavity (with no deposit in the lungs). The Company's proprietary liquid formulations allow drugs typically administered by injection to be absorbed into the body by the lining of the inner mouth using the Company's proprietary RapidMist(tm) device. The Company's flagship product, oral insulin (Generex Oral-lyn(tm)), which is available for sale in Ecuador for the treatment of patients with Type-1 and Type-2 diabetes and which was approved for sale in India in October 2007, is in various stages of clinical development around the world. For more information, visit the Generex website at www.generex.com.
Safe Harbor Statement: This release and oral statements made from time to time by Generex representatives concerning the same subject matter may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements can be identified by introductory words such as "expects," "plans," "intends," "believes," "will," "estimates," "forecasts," "projects" or words of similar meaning, and by the fact that they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing potential product applications, potential collaborations, product development activities, clinical studies, regulatory submissions and approvals, and similar operating matters. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known and others of which are not. Known risks and uncertainties include those identified from time to time in the reports filed by Generex with the Securities and Exchange Commission, which should be considered together with any forward-looking statement. No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue reliance on such statements. Generex undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Generex cannot be sure when or if it will be permitted by regulatory agencies to undertake additional clinical trials or to commence any particular phase of clinical trials. Because of this, statements regarding the expected timing of clinical trials cannot be regarded as actual predictions of when Generex will obtain regulatory approval for any "phase" of clinical trials. Generex claims the protection of the safe harbor for forward-looking statements that is contained in the Private Securities Litigation Reform Act.