Very Bullish News on Nastech!!!, B-12 has been Licensed!!!
Wednesday July 16 4:43 PM EDT
Company Press Release
Source: Nastech Pharmaceutical Company, Inc.; Schwarz Pharma, Inc.
Nastech Licenses Nascobal to Schwarz
Pharma, Inc.
Schwarz to Dedicate Significant U.S. Resources to
Marketing; Nastech Retains Manufacturing Rights
HAUPPAUGE, N.Y. and MEQUON, Wisc., July 16 /PRNewswire/ --
Nastech Pharmaceutical Company, Inc. (Nasdaq:NSTK) and Schwarz
Pharma, Inc. (ADR: SWPHY) today jointly announced that the two
companies have entered into an exclusive agreement, giving Schwarz
Pharma rights to market Nascobal(TM) (Cyanocobalamin, USP) Gel for
Intranasal Administration in the U.S. and the right to obtain exclusive
licenses to market the product in major countries in Europe and Asia.
Nastech retains global manufacturing product rights.
Under terms of the agreement, Nastech will receive royalty payments from
Schwarz Pharma on annual net sales of the product in the U.S., ranging
from 20-26 percent, tied to sales volume. In addition, there is a
guaranteed minimum royalty payment of $2 million in 1998, and a fixed
manufacturing transfer price during the term of the agreement. The terms
of the transaction do not include any up front licensing fees. Royalty rates
may be subject to re-negotiation depending on certain events.
The product is scheduled to be launched no later than January 1998, and
Nastech will begin shipping commercial quantities in the fourth quarter of
this year.
Nastech received marketing clearance for Nascobal from the U.S. Food
and Drug Administration as maintenance therapy for vitamin B-12
deficiency, including pernicious anemia. Currently, vitamin B-12 therapy
for pernicious anemia is generally administered through intra-muscular
injections by a health care professional. There may be as many as 1
million patients receiving vitamin B-12 therapy in the U.S. alone.
Nascobal is self- administered and delivered as a convenient nasal gel
representing a significant advance over current dosage forms.
``Schwarz Pharma represents the ideal partner to maximize the
commercial success of Nascobal,'' commented Robert H. Rosen,
Executive Vice President of Nastech, ``They have a significant sales force
presence with over 275 representatives, a comprehensive managed care
organization and have provided us with a strong commitment to the
product based on the promotional budget and sales force allocation. In
addition, they are well recognized in Europe which will accelerate
adoption of Nascobal outside of the U.S.''
Klaus Juelicher, President of Schwarz Pharma US, commented,
``Nascobal represents an exciting opportunity for us and fits very well
with our overall product line.'' He added, ``With its unique delivery
technology, Nastech creates significant benefits for patients and as such is
an ideal partner.''
``This collaboration further substantiates our corporate strategy of
retaining our products through late stage development, maximizing our
long- term revenue potential and enhancing shareholder value,''
commented Dr. Vincent Romeo, President and CEO of Nastech.
Schwarz Pharma, Inc. is the US affiliate of Schwarz Pharma AG, which is
publicly traded in Germany, employs over 3000 people worldwide and
has licensing agreements in 50 countries. Total group sales in 1996 were
$ 800 million. Schwarz Pharma, Inc. is based in Mequon, Wisconsin. The
US affiliate employs 700 people and had sales of approximately $ 200
million in 1996.
Nastech Pharmaceutical Company Inc. is engaged in research and
development of pharmaceuticals to be administered through the nasal
route and is a worldwide leader in developing patented nasal drug
delivery technology. The company has been issued and has pending
patents for the nasal delivery of several drugs, some of which afford a
convenient and economical alternative to the injectable or oral forms of
the pharmaceutical product. |
