For those who haven't seen it yet:
Thursday July 9, 12:36 pm Eastern Time
Company Press Release
SOURCE: Paracelsian, Inc.
Paracelsian Announces Strategic Alliance With R.P. Scherer
ITHACA, N.Y., July 9 /PRNewswire/ -- (Nasdaq: PRLN - news) Paracelsian, Inc. ( paracelsian.com )
announced today that it has signed a definitive agreement with R.P. Scherer (NYSE: SHR - news) that
establishes R.P. Scherer North America as Paracelsian's exclusive agent for the marketing and distribution of its
BioFIT Certification program. In addition, the Agreement provides for collaboration between the two
companies in the development of new dietary supplements and OTC products.
R.P. Scherer ( rpscherer.com ), is a leading manufacturer of herbal and other dietary supplement
products, and the world leader in soft gel technology and drug delivery systems.
The agreement between Paracelsian and R.P. Scherer covers the North American market and calls for
negotiation of a worldwide agreement within 90 days, on terms and conditions essentially equivalent to those
in the North American agreement. Revenues to Paracelsian from this agreement include development fees,
certification fees, and minimum required royalty payments.
''This represents significant value to Paracelsian and its shareholders'', stated Bernie Landes, Paracelsian's
President and CEO. ''The agreement covers the cost of developing and running the BioFIT Certification
Program, while also providing a continuing, growing, and highly profitable royalty stream,'' he added.
''The past several months have been particularly difficult because of the pressure to meet the expectations of
stockholders to complete a deal with a major corporate partner, thereby validating our new corporate strategy.
Fortunately, we were able to proceed in a prudent manner to reach a deal with the partner that we believe will
maximize value for Paracelsian shareholders. This partnership supersedes any prior discussions with other
potential partners in the degree of credibility and value it adds to Paracelsian's core technology,'' Landes
concluded.
Under the terms of the North American agreement, Paracelsian will initially complete development of 10 BioFit
assay systems. R.P. Scherer will receive exclusive BioFit marketing and distribution rights. R.P. Scherer will pay
Paracelsian fees concurrent with the completion of BioFIT assay systems, certification of products, and
completion of agreements with new customers. The terms of the agreement call for Paracelsian to receive
royalties on the sale of all BioFIT certified products and the establishment of minimum royalty payments. In
addition to these fees, Scherer agrees to pay Paracelsian a per batch fee for ongoing certification of products
on a batch to batch basis. These fees represent a significant additional source of revenue to Paracelsian.
''R.P. Scherer is pleased to conclude this agreement with Paracelsian. The exclusive right to produce and
market herbal products under the BCP further strengthen R.P. Scherer's leadership in the herbal category, today
and in the future,'' said David Heyens, VP of R.P. Scherer's Nutritional Division. ''We are excited to promote
this program and are committed to an aggressive marketing program.''
R.P. Scherer Corporation an international developer and manufacturer of drug delivery systems, is the world's
largest producer of soft gelatin capsules (''soft gels''). The company is currently developing and
commercializing a variety of advanced drug delivery systems. The company's proprietary drug delivery
systems improve the efficacy of drugs by regulating the dosage so as to ease administration, increase
absorption, enhance bioavailability and control the time and place of release. The company operates a global
network of 19 facilities in 12 countries.
Paracelsian is a unique biotechnology company whose business centers on the development and application
of functional bioassays. These assays are used for Quality Assurance of herbs, botanicals and other dietary
supplements, in the development of dietary supplement, OTC and pharmaceutical products, and in monitoring
environmental toxins and identifying carcinogens.
Notice: This news release may contain forward-looking statements.
Investors are cautioned that such forward-looking statements involve risks and uncertainties, including but not
limited to, the results of research and development efforts, the effect of regulation by the United States Food
and Drug Administration and other agencies, the impact of competitive products, product development
commercialization and technological difficulties, and other risks detailed in the Company's periodic reports filed
with the Securities and Exchange Commission.
No forward-looking statement is a guarantee of future results or events, and one should avoid placing undue
reliance on such statements.
SOURCE: Paracelsian, Inc. |
