Gum Tech responds with very strong language. I was told by the company that Gum Tech's lawyers gave them this language because they felt so strongly that Quigley's lawsuit is without merit. It is unusual for attorneys to suggest that a company use such strong language, and they would only do so if they were convinced beyond any doubt that the lawsuit is groundless.
Get a load of this tidbit...sales are now five times greater than they were in the third quarter. Just last Friday, sales were 3 x the third quarter, so they have sold about $3 million worth of Zicam in just the last few days. They have now booked about $8 million in sales and there are still six weeks left in the quarter. This will be a blow out quarter for Gum Tech.
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GEL TECH REPORTS CONTINUED INCREASE OF ZICAM SALES; ASSERTS QUIGLEY LAWSUIT TOTALLY WITHOUT MERIT
PR NEWSWIRE - November 18, 1999 17:35
WOODLAND HILLS, Calif., Nov 18, 1999 /PRNewswire via COMTEX/ -- Gel Tech LLC, a joint venture of Gum Tech International (Nasdaq: GUMM) 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), 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 (C) 1999 PR Newswire. All rights reserved. prnewswire.com -0- CONTACT: Regan Phillips, regan_phillips@edelman.com, or Regina Novickis,
both of Edelman Worldwide, 323-857-9100; or Brown Russell of GumTech LLC, 602-252-1617 (GUMM)
GEOGRAPHY: California
INDUSTRY CODE: MTC
BIO
SUBJECT CODE: LAW
News provided by COMTEX
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