Pacgen Life Science Corporation announced that it has entered an agreement (the agreement') with General Biological Corporation ('GBC') pursuant to which the company will sublicense to GBC the right to develop and commercialize PAC-113, a 12 amino-acid antimicrobial peptide derived from a naturally occurring histatin protein found in human saliva. Under the terms of the Agreement, Pacgen will sublicense to GBC its worldwide exclusive right to develop and commercialize prescription and non-prescription pharmaceutical products containing PAC- 113 or one or more related peptides for the treatment of any oral condition (excluding transitional skin- mucous membrane areas), as well as vaginal, dermatological and ophthalmic conditions. In exchange, GBC will pay Pacgen both an upfront payment and minimum annual royalty payments.

GBC will also pay Pacgen milestone payments and royalty payments linked to marketing approvals and product sales, respectively. Completion of the transaction contemplated by the Agreement is subject to approval by the TSX Venture Exchange and approval by the shareholders of the Company.