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Canadian Corporate News --- Hot Off The Wire
News Release for DRUG ROYALTY CORPORATION INC.
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NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: DRUG ROYALTY CORPORATION INC.
TSE SYMBOL: DRI
FEBRUARY 11, 1999
Drug Royalty - 1999 Royalty Revenues To Significantly
Increase With Interests In World Leading Drugs
TORONTO, ONTARIO--Based on Current Royalty Running Rates,
Management Expects to Achieve, in 1999, 50 percent of Planned 2000
Revenues with One Third of Anticipated Capital
Two royalty acquisitions by Drug Royalty in 1998 were the largest
in the company's history and have advanced significantly the
achievement of its strategic objective of at least $20 million in
sustainable annual royalty revenues by the end of the year 2000.
Based on the recently reported product sales for the fourth
quarter of 1998 of its two largest royalty interests, Drug
Royalty's royalty revenues are expected to, at least triple, to
$10 million in 1999.
Speaking at Drug Royalty's annual general meeting in Toronto
today, company President and CEO Ian Lennox pointed out that the
acquisition of new royalty streams during the year was "right on
target and strategy" with the company's long-range business
objective.
"Within the $300 billion pharma industry, royalties are
accelerating by 15-to-20 percent each year, driven by an aging
population, growing consumerism, increased costs and exciting
innovations in technology," he added. "This acceleration drives
an ever-increasing need for capital. A portion of that capital
need generates the estimated $10 billion worth of royalties that
flow from the industry each year."
Drug Royalty's two major acquisitions in 1998, for a combined
investment of $42 million, consisted of royalty interests in the
drugs Neupogen(R) and paclitaxel. Neupogen is the most popular
infection-fighting drug in the world used in conjunction with
chemotherapy and is sold by Amgen Inc. (Nasdaq:AMGN), the world's
largest independent biotechnology company. Neupogen's sales in
the fourth quarter of 1998 were up 10 percent over the prior year
period, reaching US$1.12 billion for the year. Paclitaxel sells
under the brand name Taxol(R) and is marketed by Bristol-Myers
Squibb Company (NYSE:BMY). In January, Bristol-Myers Squibb
reported that fourth quarter sales of Taxol were up 36 percent
over the prior year period. Taxol is the single largest
anti-cancer drug in the world with 1998 sales of US$1.2 billion.
Drug Royalty's interests in both drugs represent 85 percent of the
company's existing royalty portfolio. They exemplify its focus on
late stage commercial products that can generate sustainable
royalty revenues quickly.
"We expect that with the addition of a full year of royalties from
Neupogen and the recent acquisition of Taxol royalties, our
revenues in 1999 will at least triple before any revenue from new
acquisitions," stated Executive Vice-President and CFO, Jim
Webster. "We're targeting late stage products where clinical
trials have reached Phase III, where regulatory approval may
already have happened or where the product has reached the
commercial phase - this was the case with both these investments."
The remaining 15 percent of the company's portfolio is in earlier
stage, innovative technologies and products with significant
reward potential. Some of these royalty interests are also
generating current royalty revenues, such as UltraVision, Inc.
(ASE:UVC), which on February 5, 1999 completed a $26 million
financing to acquire an international vision care company.
Drug Royalty stated previously that it expected to achieve its
year 2000 revenue target by investing up to $175 million in a
balanced portfolio of interests. At November 30, 1998, Drug
Royalty reported that its royalty interests had a carrying value
of $50.3 million, after amortization.
Drug Royalty provides shareholders with a means of participating
in the global life sciences industry by creating and acquiring
royalty interests in pharmaceuticals. Drug Royalty is
implementing its strategy through:
(i) creating new royalty contracts by providing funds to life
science companies in return for royalties;
(ii) acquiring existing royalty streams from public institutions,
inventors or companies; and,
(iii) acquiring intellectual property rights which can be licensed
for royalties.
Drug Royalty's common shares trade on The Toronto Stock Exchange
under the symbol DRI. This release and other information about
Drug Royalty Corporation Inc. can be found on their new website at
www.drugroyalty.com.
Drug Royalty cannot guarantee that any predictions, forecasts and
other forward-looking statements in this news release will
materialize. Nor is it possible for the company to commit itself
to updating information about risks and other factors pertaining
to its business that might appear in this or any other
public-disclosure documents it publishes.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Drug Royalty Corporation Inc.
Ian Lennox
President & CEO
(416) 863-1865 ext. 234
(416) 863-5161 (FAX)
ianl@drugroyalty.com
or
Drug Royalty Corporation Inc.
Jim Webster
Executive Vice-President
(416) 863-1865 ext. 225
(416) 863-5161 (FAX)
jimw@drugroyalty.com
INDUSTRY: MTC
SUBJECT: ERN
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