Cortech And BioStar Sign Merger Agreement

Cortech, a Denver-based biopharmaceutical company, and BioStar, aprivately-held diagnostics firm based in Boulder, Colorado, have signed a definitive merger agreement. Under the terms of the deal, Cortech will issue 28,500,000 shares of its common stock to BioStar's stockholders in exchange for all equity interests in the company.

BioStar will become a wholly-owned subsidiary of Cortech, subject to the approval of both companies' shareholders, and the transaction is expected to be completed in the second quarter of 1998. BioStar will keep its existing staff and facilities utilizing its proprietary Optical ImmunoAssay technology.

BioStar sells tests for diseases such as Streptococcus pneumoniae A and B and for chlamydia, the leading cause of female infertility, which are sold by its 90 sales staff in the USA. It is currently developing tests for influenza, pneumonia and gonorrhea, among other diseases.