The Gazette from Montreal, Quebec, Canada • 25

BUSINESS B3 THE GAZETTE, MONTREAL, WEDNESDAY, MHIMIV 19, 1005 Procyon hit by setback in testing of drug Shermag chops jobs at plant in Scotstown Squeezed by competition from Asia, strong dollar NICOLAS VAN PRAET THE GAZETTE COURTESY OF CANDEREL MANAGEMENT This part of Bickerdike basin is the site eyed by developer Canderel for its redevelopment project. The plan includes a exhibition hall, which is almost three times as big as Place Bonaventure's facility. Old Ptot mMmq, mm Shares in Procyon Biopharma Inc. plunged 42 per cent yesterday after the pharmaceutical company said recent clinical trials of its Fibrostat treatment for excessive scar formation did not produce encouraging results. Procyon's stock fell 31 cents to close at 43 cents per share on the Toronto Stock Exchange in trading of more than 2.7 million shares yesterday The shares fell as low as 39 cents during the day Results of the trials, conducted.jn Canada and the United States, indicate that although the drug was safe and well tolerated, its effectiveness could note proved.

"Analysis of the primary efficacy end-point showed no overall significant, improvement with Fibrostat as comparedjo the placebo-treated group," the Montreal-based pharmaceutical firm said. Results did show promise for the treatment of more severe scars, Procyon said. And it wants to examine the drug's effectiveness in the prevention of "Although we have not seen the desired efficacy of Fibrostat, as compared to placebo, in the treatment of hypertrophic scars, we remain confident that the new study for prevention could ajjow us to show clinical relevance," chief executive Hans Mader said. Mader said in an interview the company will now begin a clinical trial, using 20 patients, to determine if using Fibrostat immediately after surgery can pr vent scarring in the first place The trial should take about six months and shouldn't be very costly, he said. CANADIAN PRESS IT.

1 NOTICE OF APPOINTMENT. SEX Milette, Mr. Patrick K. Walsh, presi- dent of SEI Investments Canada, is pleased to announce the appointment of Mr. Jean- Frangois Milette to the position- of Institutional Regional Manager for the province of Quebec.

Before joining SEI, Mr. Milette was the vice president of a hedge fund management com- pany based in Montreal. He brings vast experience from the financial sector as Business Development Director, Invest- ment Advisor, and serving as a member on multiple Boards. Mr. Milette holds an MBit from Sherbrooke UniversitjC and a Bachelor's of Arts anct Sciences from ConcordiCI University.

"ZZ SEI is a leading global of asset management and investment technology solu tions. The company's innovaZZ tive solutions help corporations financial institutions, advisors and affluent create and manage wealth. ZZ For more information, visit www.seic.com. I Hotel desjb Silos A I Shermag Inc. has canned about half the unionized staff at its Scotstown plant east of Montreal as it battles the effects of a strong Canadian dollar and competition from Asian rivals.

The Sherbrooke company, which makes high-quality residential off 34 of 77 unionized workers. It employs nearly 2,400 at several plants. The layoffs were made over the past few weeks, company spokesperson Rick Leckner said yesterday "What we're living with is the high Canadian dollar," he said. More than 70 per cent of Shermag's sales are made in the U.S. Competition from Asia, particularly Chinese furniture makers, is also hurting Shermag, Leckner added.

In November, Shermag reported that although demand for its product remained strong, the U.S. dollar exchange rate ripped away $2.4 million from its gross earnings of $10.5 million for the second quarter. Competition and manufacturing inefficiencies took away another $2.5 million. The company moved production of low-margin items to Asia following labour disputes during the first half of 2004. It has said it needs to develop lower-cost production sites to compete.

The Scotstown site makes juvenile furniture. Shermag is scheduled to report results in mid-February, at which time a new operational plan might be made public, Leckner said. nvanpraetthegazette.canwest.com BioMep bags $19 million in financing BioMep, a small Montreal biotechnology company searching for new ways to treat an assortment of bone diseases, said yesterday it has amassed another $19 million in funding. The firm said the money will allow it to conduct clinical trials of its lead product, an enzyme-replacement treatment for a rare form of rickets that affects 40,000 children worldwide. It will also be able to buy the intellectual property rights to a new gene-discovery technology and an innovative product called Osteocrin that will complement its present small molecules program on bone lesions and osteoporosis.

The company also announced it is changing its name to Enobia Pharma. The enzyme-replacement program targets X-linked hypophosphatemic rickets, a genetic disease that is generally manifested as bone deformation, such as knock-knees or bow-legs. Eno-bia's approach will try to increase bone mineral density As there are no treatments on the market now, the company is hoping to obtain "orphan drug" status that will enable it to proceed more quickly through clinical trials and have longer patent protection. The additional funding came from Desjardins Venture Capital which is making its first investment in the firm, along with the Quebec Federation of Labour's Solidarity Fund, T2C2 Bio2000, and Innovatech Montreal, all of which increased their stakes. A.OtT I rues oietonnes i -1 The proposed Canderel development in the Old Port includes a gigantic exhibition hall, a casino and two hotels, and a Tremblant-like pedestrian village.

PROJECT Port authority, owner of land eyed by developer, rejected plan before; it still doesn't like the idea MARY LAMEY THE GAZETTE Canderel Management Inc. has an ambitious plan to build hotels, boutiques, a casino and exhibition hall on Montreal's waterfront. There's one big obstacle: the 10-hectare site the developer is eyeing belongs to the Port of Montreal and the port says the land is not for sale. Canderel's plan involves a transformation of the Bickerdike Pier, the port's multi-purpose terminal which handles containers and general cargo. The pier, located just east of the Bonaventure Expressway and south of Old Montreal, is strategically located near the twin tourist hubs of downtown and the old city, said Richard Corso, a Canderel vice-president.

Canderel's proposal includes both a five-star and a three-star hotel, one of which would be built in the now-unused Silo No. 5 at the foot of McGill St. The plan also calls for the construction of a exhibition centre suitable for large consumer and trade shows. The final piece of the puzzle would be a new casino to replace the existing facility on tie Notre Dame. "There aren't many motors that can drive economic development.

The casino and the exhibition centre are two of them," Corso said. When Canderel first approached the port about redeveloping the pier a year ago, the Port's chief operating officer, Dominic Taddeo, was quick to bat it down. Yesterday he sounded exasperated. "Here we go again," Taddeo said. "Every few years, somebody wants to try to buy that land.

It isn't for sale." Taddeo has been through this once before. In 2000, Toronto's Reichmann family proposed building a domed pleasure palace on the site. The plan won the enthusiastic backing of then-mayor Pierre Bourque, but died when the port refused to cede the land. The Port rebuffed Canderel's plan in a Hotel aes --'n ''V 'jW, Centre de -A Folres COURTESY OF CANDEREL MANAGEMENT Jean-Pierre Roy said. The final piece of the puzzle is a exhibition hall.

Unlike the Palais des congres, which is suitable for conventions and meetings, or Place Bonaventure, which at 225,000 square feet is too small for large events, the facility Canderel wants to build would be designed specifically for large-scale trade and consumer shows. Canderel has lined up more than $900 million in financing for its project, but is seeking government funding to decontaminate the land and build the tram. It is seeking another $52 million from various governments to buy the sita The port says other land is available. The Alstom train yards in Point St. Charles are one alternative.

But Canderel says only one location makes sense for a project of this magnitude. It wants the Bickerdike Pier or nothing at all. "Without criticizing anyone, we've seen what happens when things get built in the wrong plac9. Look at the Olympic Stadium. Look at Mirabel airport.

Any other site would be too far from the core to make any sense." mlamey thegazette.canwest.com 3 letter sent last February "In brief the Montreal Port Authority will not participate in or permit the realization of any development which in any way threatens its vocation as a port." Canderel got the message, but that has not dampened its enthusiasm for its megaproject. "Developers are the spearhead of change," Corso said. "We stir things up and get things done. Are there obstacles to this project? Yes, but there are also solutions. The key is to create a win-win solution for everyone." Part of that win-win, presumably includes getting Loto-Quebec onside.

The casino would draw tourists and other businesses to the area. Canderel envisions a Tremblant-like pedestrian village with 9,500 underground parking spaces, boutiques, restaurants and artisans' workshops, all connected to the Old Port by a tramway "We know that Loto-Quebec looked at the port. If we get the Bickerdike, it makes it easier to get the casino," Corso said. The provincial gaming agency is weighing plans either to expand the existing Montreal Casino or relocate to the Peel Basin, west of the Bonaventure Expressway It has no plan to join Canderel's venture, Loto-Quebec spokesperson HEIDI Jr f. A-t "ZZm' i ii 4 VACATIONS.COM 0vT WtttMmfnm Stt9 PP I canjet.com l.Boo.809.7777 or call your travel agent.

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