EDMONTON - Afexa Life Sciences Inc. says the future growth of its signature Cold-FX cold and flu remedy isn't reflected in the $56.7-million hostile takeover offer by Paladin Labs Inc. (TSX:PLB).

The Edmonton-based company's board has advised its shareholders to reject the unsolicited offer as it considers better offers, board chairman William B. White said Wednesday.

"The offer actually doesn't even adequately compensate against the value of the lead product, Cold-FX," White said from Toronto.

Cold-FX is also now available in Hong Kong and there are plans to have it sold in the United States, China and Japan, significantly increasing the company's revenues, he said.

"The future value to shareholders into those markets is much greater than the value we are currently able to deliver just in the Canadian market."

Afexa (TSX:FXA) shares traded Wednesday at 57 cents, up one cent, at the Toronto Stock Exchange.

Late Tuesday, Afexa's board of directors unanimously confirmed its previous recommendation that shareholders reject Paladin's bid.

White said Paladin's 55 cent per share offer isn't enough, saying it's "only a five per cent premium to the weighted average price that Afexa has traded at through the first half of the year."

Specialty drug company Paladin has said it expects the Cold-FX remedy to help increase sales of its over-the-counter medications.

The remedy has been promoted by Olympic figure skating champion Joannie Rochette and TV personality and former NHL coach Don Cherry.