Probably written August 2002:
2002 Annual Report
In January 2001, Dimethaid International entered into an exclusive distribution agreement with Provalis Healthcare Limited for PENNSAID in the UK. As commitments were not met, this agreement was terminated on June 14, 2002. To maintain continuous product supply to patients in the UK, interim distribution arrangements have been made and discussions with new distributors are expected to be completed within the calendar year.
Page 24
After PENNSAID approval by the UK Medicines Control Agency,
Dimethaid International entered into an exclusive distribution agreement
with Provalis Healthcare Ltd., a division of Provalis Plc. Provalis was responsible
for all costs associated with marketing, distributing and selling
PENNSAID in the UK. Dimethaid International received a fee for these
rights and was entitled to a significant share of sales revenue. Following
year-end, the agreement had to be terminated after Provalis encountered
difficulties meeting contractual obligations. Dimethaid looks forward to
signing a new UK marketing partner during the first half of fiscal 2003.
Page 20
2003 Annual Report – Page 13
In December 2002, Provalis Healthcare Ltd. Initiated arbitration proceedings, challenging Dimethaid International’s right to terminate an exclusive agreement for PENNSAID in the UK. The Company believes this challenge is without merit and has filed a defense and counterclaim in these proceedings, which are expected to be completed in the next fiscal year. To maintain continuous product supply to UK patients, the Company has made interim distribution arrangements and expects to complete final sales and marketing arrangements for PENNSAID within the calendar year. |
