newswire.ca
Biotech signs licensing agreement to distribute its diabetes drug, DIAB II, in Venezuela
VANCOUVER, June 10 /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 Venezuela. Under the agreement
signed June 3, 1999, Biotech has granted a seven-year license to Laboratorios
Elmor S.A. (''Elmor'').
''We believe,'' Mr. Rieveley said, ''that Elmor can be highly effective
in introducing Diab II to the Venezuelan market. Elmor calls on doctors and
pharmacies throughout Venezuela. Elmor has over 400 employees, with over half
of those in sales and marketing, and has a history of very strong brand
development. Elmor,'' he added, ''is the largest Venezuelan-owned
pharmaceutical firm and is fourth in sales in the Venezuelan pharmaceutical
market, after multi-nationals Bristol-Myers Squibb, Pfizer and Hoechst.''
Under the licensing agreement, Biotech and Elmor will cooperate in the
preparation of a registration dossier for DIAB II in Venezuela. With
approximately 1 million Type II diabetics and one of the wealthiest
populations in Latin America, Venezuela represents a significant market for
DIAB II.
Biotech's distribution plan in Latin America, which according to the
World Health Organization has over 20 million diabetics, was initiated with
signing a distribution and marketing agreement for the Brazilian market with
Biobras, S.A. in September 1998. In March of this year, Biotech signed its
second licensee, Craveri S.A., a Buenos Aires pharmaceutical firm that will
market DIAB II in Argentina. Discussions with potential licensees in a number
of other key Latin American countries are also underway.
Latin America, where over 10% of those over 40 years old have Type II
Diabetes, represents a significant market for DIAB II. Each one percent of
the diabetic population in these markets - a total of 100,000 prescriptions in
Brazil, Argentina or Venezuela - would generate DIAB II sales revenues of over
$20,000,000 per year.
DIAB II, an oral diabetes drug, is an insulin-receptor sensitizer. DIAB
II, taken daily, works by improving the patient's ability to absorb insulin,
the hormone that controls blood sugar levels. Studies of the drug have shown
it to be both effective and safe. DIAB II, which is controlled world-wide by
Biotech, has received regulatory approval in China and is sold there as a
treatment for Type II Diabetes. A supplemental trial of the drug has been
completed in Brazil and a timely regulatory application in that country is
projected.
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 lead to submitting 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 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).
For inquiries, contact Austin Rand at Biotech Holdings Ltd.
1 888 216 1111 (toll-free), 8 a.m. to 5 p.m. Pacific time,
or by e-mail at biotech@direct.ca.
Please visit Biotech's website at www.biotechltd.com.
This release contains forward-looking statements within the meaning of
Section 21E of the Securities and Exchange Act of 1934, as amended. Although
the Company believes that the expectations reflected in such forward-looking
statements are reasonable, actual results may differ for reasons that include
but are not limited to political and economic conditions in the countries in
which the Company does or intends to do business, regulatory action, product
pricing and competitive market conditions. These forward-looking statements
represent the Company's judgement at the date of this release and any changes
in assumptions or external factors could produce significantly different
results.
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For further information: Austin Rand at Biotech Holdings Ltd.
1-888-216-1111 (toll-free), 8 a.m. to 5 p.m. Pacific time, or e-mail
biotech@direct.ca, website www.biotechltd.com.
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