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Thursday May 6, 4:07 pm Eastern Time
Company Press Release
SOURCE: GumTech International, Inc.
Gum Tech Executes Operating Agreement With BioDelivery Technologies For Gel Tech LLC
PHOENIX, May 6 /PRNewswire/ -- GumTech International, Inc. (Nasdaq: GUMM - news) announced today that it has signed an operating agreement with BioDelivery Technologies, Inc. governing the terms and conditions of their joint venture through Gel Tech LLC, a limited liability company formed in January 1999. BioDelivery Technologies, Inc. (formerly Gel Tech, Inc.) is a privately-held biotechnology company which specializes in the development of unique systems for the delivery of bioactive compounds.
The joint venture will market and distribute ZICAM(TM), a new homeopathic cold remedy. ZICAM(TM) uses a nasal gel to deliver its active ingredient, Zinullose(TM), a patent-pending ionic zinc emulsification formula. Initial research has shown that ZICAM(TM) reduces the duration of the common cold from an average of 10 - 14 days to an average of 1 - 3 days. Under the terms of the operating agreement, Gum Tech will own a 60% interest and BioDelivery Technologies will own a 40% interest in Gel Tech LLC.
''The completion of our joint venture involving Gel Tech LLC is a significant step for Gum Tech,'' said Gum Tech President Gary Kehoe. ''The development of ZICAM(TM), a non-chewing gum product, is the result of BioDelivery Technologies' expertise in nasal gels combined with Gum Tech's research related to chewing gums. Thus far, the response we have received from both retail buyers and consumers indicates that ZICAM(TM) represents a significant market opportunity. The formation of Gel Tech LLC as a separate entity to realize the commercial potential of ZICAM(TM) will allow Gum Tech to capitalize on this opportunity while remaining focused on our core business of developing and manufacturing superior functional chewing gums.''
R. Steven Davidson, CEO of BioDelivery Technologies, and newly appointed CEO of Gel Tech, added, ''The completion of this operating agreement allows us to move forward rapidly with the marketing and distribution of ZICAM(TM). We believe that our initial test marketing effort during the end of this year's cold season in Eckerd Drug stores and Albertsons nationwide, as well as a number of other regional chains, has been a success, and we are preparing for much wider distribution. We have received a significant amount of interest from other retailers and feel confident that ZICAM(TM) will be available in most major drug, grocery and mass retail chains in the United States during the coming cold season.''
''We also have received a significant amount of unsolicited interest in the product from companies overseas,'' said Davidson. ''As a result, we intend to begin international distribution sooner than we had originally anticipated.''
Davidson concluded, ''In addition, we will now move forward with the next phase of clinical research concerning the efficacy of ZICAM(TM). This research will have three objectives: first, to confirm ZICAM(TM)'s ability to significantly reduce the duration of the common cold; second, to explore ZICAM(TM)'s ability to not only reduce the duration of the cold but also to prevent the onset of symptoms; and third, to test ZICAM(TM)'s ability to relieve the symptoms caused by allergic reactions to airborne allergens.''
Gum Tech develops, manufactures, and distributes specialty chewing gum products designed to provide health benefits to consumers. The company partners with major food, pharmaceutical, or marketing companies to develop and manufacture gum products under contract manufacturing agreements and supports its own line of branded gums. Gum Tech operates one of the most advanced chewing gum manufacturing plants in the U.S. and is the only stainless steel gum manufacturing facility registered with the Food and Drug Administration to manufacture gum with over-the-counter drug products.
Gum Tech is located at 246 East Watkins Street, Phoenix, Arizona 85004. (Nasdaq: GUMM - news) E-mail: Brown@gum-tech.com
Gum Tech Forward-Looking Statement:
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding Gum Tech's anticipated growth in business and future results of operations related to its interest in Gel Tech LLC. These forward-looking statements are based on Gum Tech's expectations and are subject to a number of risks and uncertainties, many of which cannot be predicted or quantified and are beyond Gum Tech's control. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Factors that could cause actual results to differ materially from Gum Tech's expectations include a variety of difficulties inherent in a start-up enterprise, such as less than anticipated demand for ZICAM(TM), lack of market acceptance for or uncertainties concerning the efficacy of ZICAM(TM), difficulties in obtaining additional capital for marketing, research and development, and other expenses, aggressive pricing and marketing efforts by rival cold remedy manufacturers, unavailability of third-party material products at reasonable prices, and material litigation involving product liabilities and consumer's issues. Other factors that may cause actual results to differ materially from those anticipated in these forward-looking statements are described in Gum Tech's Annual Report or Form 10-KSB for the fiscal year ended December 31, 1998.
SOURCE: GumTech International, Inc. |
