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Exciting News, AHP & GGEN
Attached is the press release concerning an agreement signed between AHP and GGEN. Galagen will be providing its immune boosting Proventra technology to AHP for the infant formula market. AHP currently sells over $800 million in infant formula worldwide. Further ?'s please call (888)887-6512.
GALAGEN INC. SIGNS AGREEMENT WITH AMERICAN HOME PRODUCTS TO DEVELOP AND COMMERCIALIZE A NATURAL IMMUNE-ENHANCING INGREDIENT FOR USE IN NUTRITIONAL PRODUCTS
Collaboration and License Agreement with Wyeth-Ayerst, a Division of American Home Products, Targets Age-Specific Nutritional Application of GalaGen's Proventra Technology
ARDEN HILLS, MINN. October 20, 1998 --- GalaGen Inc. (NASDAQ Symbol: GGEN) announced today it has entered into a collaboration and license agreement and a manufacturing and supply agreement with Wyeth-Ayerst, a division of American Home Products (NYSE: AHP). The two companies will develop and commercialize a proprietary ingredient with unique antibacterial properties for use in infant formula and other nutritional products.
The companies will collaborate during the research and development phase of the product and Wyeth-Ayerst will have financial and oversight responsibilities for all clinical trials and regulatory compliance related to the use of the ingredient in infant formula products.
According to the Agreement, Wyeth will have worldwide rights to the use of the ingredient in its infant formula and other nutritional products. GalaGen will retain certain rights for the manufacture, product development and licensing of the ingredient in non-infant formula nutritional products. GalaGen will also receive licensing and milestone payments. Specific financial terms of the agreement were not disclosed.
GalaGen's President and CEO, Robert A. Hoerr, M.D., Ph.D., said: "This nutritional product collaboration will develop an application of our technology for many large consumer markets. Clinical proof of principle for this application has already been established, so we are confident about the success of the program and pleased that it is now moving towards rapid commercialization."
Wyeth Nutritionals International President, Kevin Reilly, stated, "This exciting technology will provide an important new measure of functionality for our infant formula and toddler nutrition products to further support our aggressive growth plans. We recognize that the technology has application for the broader nutritional markets and are pleased to share in the upside as we and GalaGen pursue product development and sub-licensing in additional market segments."
Wyeth-Ayerst is a leading infant formula manufacturer with distribution in more than 90 countries.
American Home Products Corporation is one of the world's largest research-based pharmaceutical and health care products companies. It is a leader in the discovery, development, manufacturing and marketing of prescription drugs and over-the-counter medications in addition to vaccines, biotechnology, agricultural products and animal health care.
GalaGen Inc. is a nutritional products company that is utilizing its proprietary immune boosting technology and patented manufacturing processes to commercialize health-promoting foods and beverages. The Company continues to expand applications for its Proventra Brand Natural Immune Components technology and is developing a portfolio of Proventra-based products that target the needs of consumers and the healthcare market.
Except for historical information, matters discussed in this press release are forward-looking statements that involve risk and uncertainties, including, but not limited to, risks associated with entering new markets, consumer acceptance, regulation of nutritional products including infant formula and dietary supplements, competitive pressures and other important factors detailed in the Company's annual report on Form 10-K for fiscal 1997 filed with the Securities and Exchange Commission. |
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