>>REDWOOD CITY, Calif., Nov. 29 /PRNewswire/ -- Cygnus, Inc. (Nasdaq: CYGN - news) and Sankyo Pharma Inc., a wholly owned subsidiary of Sankyo Co. Ltd., a $4.3 billion Japanese pharmaceutical company, today announced that the companies have signed a co-promotion agreement for the GlucoWatch® Biographer in the United States. The agreement calls for Sankyo to pay Cygnus $10 million and, in exchange for its co-promotion activities, Sankyo will receive a percentage of the net sales of the GlucoWatch Biographer in the United States.
``We are very excited to have Sankyo as a co-promotion partner. This agreement is an excellent fit for the type of relationship we were seeking,'' stated John C Hodgman, Chairman, Chief Executive Officer and President of Cygnus. ``Sankyo's expertise and commitment to the treatment of diabetes, combined with their highly professional and motivated sales force, will play a major role in the successful launch of the Biographer in the United States. With the Sankyo team in place, we have all the functions essential to usher in this new era of glucose management for the millions of Americans who live with diabetes.''
``The GlucoWatch Biographer represents a unique quality-of-life breakthrough for people who suffer from diabetes,'' said Joseph P. Pieroni, President of Sankyo Pharma. ``We are pleased to have the opportunity to add the GlucoWatch Biographer to our achievements in the diabetes marketplace, and we are confident that the match of Sankyo's expert sales force with Cygnus technology will equal a tremendous advance for the diabetes patient population.''
Cygnus and Sankyo will collaborate closely on all sales and marketing efforts via a joint sales and marketing committee. Sankyo will assign a 50-person specialty sales force, well-versed in diabetes and its treatment, to leverage Sankyo's already established relationships with physicians having the highest potential for prescribing the GlucoWatch Biographer. Sankyo will also provide broad market coverage through their 450 primary care sales representatives. In addition, Sankyo will deploy 20 managed care account managers to obtain insurance reimbursement for the GlucoWatch Biographer and will communicate key scientific data to medical professionals through its 20 medical managers.
Cygnus will be responsible for marketing, manufacturing, supply, distribution and customer service, as well as for product research and development, clinical and regulatory activities. ``Our goal was to find a partner with the category experience and sales and marketing expertise that we could leverage to launch this product. This approach allows us to accelerate product penetration without the expense of developing a sizable sales force of our own. In addition, the agreement establishes attractive financial terms, providing Cygnus with $10 million cash and a significant portion of the revenue from sales of the GlucoWatch Biographer in the United States,'' stated Craig W. Carlson, Chief Operating Officer and Chief Financial Officer of Cygnus.
The signing of the co-promotion agreement with Sankyo completes the necessary steps for launching the GlucoWatch Biographer in the United States. Cygnus and Sankyo will immediately begin to work jointly to finalize sales and marketing plans. Early in the first quarter of 2002, a concentrated effort to educate health care professionals about the GlucoWatch Biographer will begin. Customer sales will be initiated after the sales force has met with a critical mass of health care professionals to describe the benefits and proper use of the GlucoWatch Biographer.<<
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