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Biotech signs licensing agreement to distribute its diabetes drug, DIAB II, in Argentina
VANCOUVER, March 30 /CNW/ - Robert B. Rieveley, President of Biotech
Holdings Ltd. (''Biotech'', OTC BB: BIOHF), is pleased to announce that
Biotech has signed a licensing agreement for the distribution of Biotech's
Type II or Adult Diabetes drug, DIAB II, in Argentina. Under the agreement
signed March 19, 1999, Biotech has granted a seven-year license to Craveri
S.A. (''Craveri'').
''Craveri,'' Mr. Rieveley added, ''is well-positioned in the distribution
of diabetic drugs in Argentina. We believe that Caveri will establish DIAB II
as a dominant drug in the treatment of Type II Diabetes. Caveri is focused on
sales to drugstores, hospitals and government agencies, as well as directly to
consumers.''
Biotech's distribution plan for DIAB II in Latin America, which according
to World Health Organization data has over 20 million diabetics, was initiated
with signing a distribution and marketing agreement with Biobras, S.A. of
Brazil. Biobras is the fourth largest insulin producer in the world and an
important channel for distribution of diabetic products in Brazil. There are
over 7 million diabetics in Brazil.
The next step in Biotech's Latin American marketing strategy is
Argentina, which has the highest per capita income in Latin America and one of
the highest per capita drug expenditures in the world. There are
approximately two million cases of Type II Diabetes in Argentina, where the
illness affects over 10% of those over 40 years of age.
Each one percent of the diabetic population in those markets - a total of
100,000 prescriptions in Brazil and Argentina -- would generate DIAB II sales
revenues of over $20,000,000 per year.
Under the licensing agreement for Argentina, Biotech and Craveri will
cooperate in the preparation of a registration dossier for DIAB II in
Argentina and assist in obtaining the support of the medical community
throughout Argentina. Craveri will participate in medical symposia and present
information on the scientific profile and medical advantages of DIAB II.
Craveri sales representatives regularly call on endocrinologists and general
practitioners with diabetic patients throughout Argentina. Craveri opened a
new pharmaceutical plant in Buenos Aires in 1997 and has 200 employees.
Biotech will continue to establish its position in selected regional
markets where Adult Diabetes affects large segments of the population by
pursuing a strategy of winning market share through working with strong local
partners. Biotech's business plan for North America and Western Europe is
based on the company's continuing discussions with a number of international
pharmaceutical companies to examine partnering potential. The goal is to
create a relationship that would submit DIAB II for approval to the U.S. FDA
as part of a licensing agreement for North America and Western Europe.
Biotech Holdings Ltd. is a Canadian-based pharmaceutical company focused
on the treatment of Type II or Adult Onset Diabetes. In 1998, Biotech
launched the marketing of its first drug product, DIAB II, in China where it
is on sale for the treatment of Type II Diabetes and Impaired Glucose
Tolerance, a condition that frequently precedes Type II Diabetes. Biotech has
been invited to have DIAB II included in the national health plan in China,
which would give over 25 million diabetics access to the medication on a very
low or no-cost basis.
DIAB II, an oral diabetes drug, is an insulin-receptor sensitizer. DIAB
II works by improving the patient's ability to absorb insulin, whether
endogenous or injected. Traditionally, Adult Diabetes has been treated with
sulfonylurea medications that stimulate the pancreas to produce more insulin,
the hormone that controls blood sugar levels, or with medications that slow
the formation of glucose. Taking a different approach, DIAB II reduces
insulin resistance and thus helps to manage the chronically high blood sugar
levels that characterize diabetes. Laboratory and clinical studies indicate
that DIAB II is effective and very safe. DIAB II does not have the
pancreas-stressing characteristics of sulfonylurea drugs and is free of the
liver toxicity that is associated with some insulin-sensitizing drugs.
Biotech Holdings Ltd. is based in Vancouver, British Columbia and has its
laboratory and plant facility in Richmond, B.C. Biotech Holdings trades on the
Over the Counter Bulletin Board in the United States (OTC BB symbol: BIOHF)
and on the Alberta Stock Exchange (ASE symbol: BIO). |
