Santarus to Receive $10 Million Milestone Payment from Tap Pharmaceutical Products
Tuesday February 15, 4:00 am ET
Company to Announce Fourth Quarter 2004 Financial Results on March 22, 2005
SAN DIEGO--(BUSINESS WIRE)--Feb. 15, 2005--Santarus, Inc. (NASDAQ:SNTS - News), a specialty pharmaceutical company focused on therapies for gastrointestinal diseases and disorders, today announced that it is entitled to receive a $10 million milestone payment, plus interest and legal expenses, from TAP Pharmaceutical Products Inc. after Santarus prevailed in a recently held alternative dispute resolution proceeding. Santarus initiated the alternative dispute resolution process in August 2003, asserting that TAP achieved a development milestone under the terms of a sublicense agreement between Santarus and TAP signed in June 2002. The assertion was contested by TAP. In the proceeding, it was determined that Santarus is entitled to receive the milestone payment from TAP within the week.
"We are pleased to have a favorable outcome on this issue," said Gerald T. Proehl, president and chief executive officer of Santarus. "Under the sublicense agreement, TAP has the right to develop immediate-release proton pump inhibitor (PPI) products for the North American market using our proprietary technology in connection with lansoprazole. The sublicense agreement continues to be part of our corporate strategy to generate additional revenues from our immediate-release technology, and we are hopeful that TAP will continue and be successful with their ongoing product development programs utilizing our technology."
Santarus also announced that on Tuesday, March 22, 2005 the company will release fourth quarter 2004 financial results after market close and an investment community conference call hosted by Santarus management will be held at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Dial-in information for the conference call will be issued at a later date.
About Santarus
Santarus, Inc. is a specialty pharmaceutical company focused on acquiring, developing and commercializing proprietary products to enhance the quality of life for patients with gastrointestinal diseases and disorders. The company's current products are immediate-release formulations of omeprazole, a widely prescribed PPI. The company launched its first product, ZEGERID(TM) Powder for Oral Suspension 20 mg, in October 2004 and received U.S. Food and Drug Administration approval to market ZEGERID Powder for Oral Suspension 40 mg in December 2004. The company also is developing capsule and chewable tablet formulations of ZEGERID. More information about Santarus is available on the company's Web site at www.santarus.com. |
