Thursday November 18, 5:35 pm Eastern Time
Company Press Release
SOURCE: Gum Tech International
Gel Tech Reports Continued
Increase of Zicam Sales; Asserts
Quigley Lawsuit Totally Without
Merit
WOODLAND HILLS, Calif., Nov. 18 /PRNewswire/ -- Gel Tech LLC, a joint venture of
Gum Tech International (Nasdaq: GUMM - news) and BioDelivery Technologies,
announced today that orders of Zicam(TM) have substantially exceeded five times the
level of sales for the third quarter. Zicam(TM), the revolutionary new homeopathic nasal
gel, has generated much attention since its widespread national distribution in October
1999.
''We are extremely pleased by the level of reorders and our success in getting
Zicam(TM) distributed throughout the country,'' said R. Steven Davidson, CEO of Gel
Tech LLC. ''Consumer response has been very positive, and sales are growing based
on word-of-mouth advertising. We are moving quickly to step-up production to meet the
increasing demand for Zicam(TM).''
Davidson also responded to The Quigley Corporation's recent announcement of a
federal patent infringement lawsuit against Gel Tech LLC and Gum Tech alleging
violation of Patent No. 33645. Quigley, which has seen sales of its zinc lozenges drop
dramatically since 1996, is a licensee under the patent, issued in the name of George
Eby III.
According to Davidson, ''The patent infringement claim by Quigley is totally without
merit and we intend to vigorously defend the claim. Because the Eby patent covers oral
medications only and Zicam(TM) is a nasal gel solution, Quigley's claim is clearly
groundless. In fact, during the patent application process, the patent owner himself
(George Eby III) claimed the patent 'is directed to the application of zinc ions to the oral
mucosa, and excludes application to the nasal opthalmic(sic) membranes.'''
Davidson concluded, ''The action by Quigley will have no effect whatsoever on the
Company's strategy and plans to aggressively promote Zicam(TM).''
Zicam is developed by Gel Tech, LLC, a joint venture between Gum Tech International,
Inc., (Nasdaq: GUMM - news), a publicly held company located in Phoenix, AZ and
BioDelivery Technologies, Inc., a privately held biotechnology company. Gum Tech and
BDT are devoted to the development of unique systems delivering bioactive
compounds.
Gum Tech Forward-Looking Statement:
This news release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including statements regarding the
anticipated growth and sales of Zicam(TM), continued favorable customer response for
Zicam(TM), the company's position regarding the patent infringement claim, and the
company's ability to produce sufficient quantities of Zicam(TM) to meet current and
anticipated demand. These forward-looking statements are based on the company's
expectations and are subject to a number of risks and uncertainties, many of which
cannot be predicted or quantified and are beyond the company's control. Future events
and actual results could differ materially from those set forth in, contemplated by, or
underlying the forward-looking statements. Factors that could cause actual results to
differ materially from the company's expectations include the lack of market acceptance
for or uncertainties concerning the efficacy of Zicam(TM) the potential costs and delays
associated with defending the patent infringement claim, which could divert the attention
of management from ordinary business operations, and the company's ability to
produce sufficient quantities of Zicam(TM) to meet current and anticipated demand,
which could result in lower sales of Zicam(TM) than would otherwise be the case and
damage relationships with the company's distributors. Other factors that could cause
actual results to differ materially from the company's expectations are described in the
company's reports filed pursuant to the Securities Exchange Act of 1934.
SOURCE: Gum Tech International
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Gum Tech International Inc (NasdaqNM:GUMM - news)
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