DYGN Announces a Licensing and Supply Agreement for Zotrim, with MOVA Laboratories
Agreement to Contribute Over 1 - Million Dollars Profit
CAMBRIDGE, Mass.--(BW HealthWire)--Aug. 11, 1998--DynaGen, Inc. (NASDAQ:DYGN - news; BSE:DYG) today announced that it has entered
into an agreement with MOVA Laboratories, Inc., a wholly owned subsidiary of MOVA Pharmaceutical Corp., to manufacture and supply Zotrim(TM), a branded therapeutic drug developed by DynaGen through its wholly owned subsidiary, Able Laboratories, Inc. Zotrim, a specialty pharmaceutical product, is based on a compliance enhancement packaging and is targeted at the women's health care market. DynaGen has focused on this market segment and intends to introduce additional products in this area. MOVA, based in Caguas, Puerto Rico and Princeton, NJ, is a privately-held pharmaceutical company which has over 750 employees in three locations and has agreements with several major pharmaceutical companies.
Under the terms of the agreement, MOVA will provide funding to complete the preparation of the New Drug Application (NDA) expected to be filed by the fourth quarter of 1998. DynaGen's manufacturing subsidiary, Able Laboratories, Inc., will manufacture and supply the product to MOVA, which will assign a detailed marketing force to promote and distribute the product to physicians. DynaGen expects that, contingent upon the approval of the product, this agreement can contribute over $1.0 million in the first year and over $1.5 million in subsequent years in profit to DynaGen.
Zotrim is a specialty pharmaceutical product aimed at providing complete treatment of urinary tract infection, a condition primarily afflicting women. Current treatments require two separate drugs to be taken in a specific sequence over several days. This requires two separate prescriptions which result in higher costs, including co-payment cost for the patient and increased time for pharmacists to dispense. In addition, patients are prone to make errors
in taking both medications in proper sequence. Zotrim combines the two most commonly used drugs in an easy-to-use package which is designed to enhance compliance by providing standardized medication instructions on the package. Several studies have shown that in general, compliance enhancement results in increased efficacy. When patients take their prescriptions correctly, they are more likely to have a positive response to the medication, reflected by reduced hospital admissions, decreased physicians visits, and reduced laboratory use; and therefore a substantial overall savings in health care costs will be realized.
DynaGen has filed several patents covering the specific product as well as the concept of compliance enhancement packaging.
''Zotrim represents a major factor in our overall strategy of focusing on the women's health care market with both generic and branded products ... We expect this product to contribute significantly to our goal of building a value added specialty product company in several categories,'' said Indu A. Muni, Ph.D., President and CEO of DynaGen, Inc.
''We see tremendous value in our relationship with DynaGen as a potential source of opportunities for our overall objective of targeting physicians with
a range of branded specialty products,'' said Joaquin B. Viso, President and CEO of MOVA Pharmaceutical Corp. ''We are looking forward to
enhancing this relationship.''
DynaGen, Inc. is a health care company involved in the research, development, manufacture and distribution of brand and generic therapeutic products. DynaGen's subsidiary, Able Laboratories, Inc., develops and manufactures the Company's generic products in its FDA registered 46,000 square foot facility located in South Plainfield, NJ. The Company markets and distributes products to independent retail chain and institutional pharmacies through its wholly-owned marketing subsidiaries, Superior Pharmaceutical Company and Generic Distributors Incorporated. The Company maintains operations in Massachusetts, New Jersey, Ohio and Louisiana.
With the exception of the historical information contained in this release, the matters described herein contain forward-looking statements that involve risk and uncertainties, including but not limited to, efforts by the Company to seek financing, statements relating to financial results, consumer interest and market share that may individually or mutually impact the matters herein, and cause actual results, events and performance to differ materially. These risk factors include, but are not limited to, the Company's dependence on a limited number of products and on the successful development and introduction of second-generation products that will generate improved gross margins, product demand and market acceptance, the effect of economic conditions, the impact of competitive products and pricing, governmental regulations, technological difficulties and/or other factors outside the control of the Company, which are detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended December 31, 1997. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Contact:
DynaGen, Inc.
C. Robert Cusick, 617/491-2527 |
