news before halt
Dimethaid and McNeil Consumer Healthcare agree to exclusive
negotiations for U.S. distribution of PENNSAID(R)
TORONTO, May 20 /CNW/ - Dimethaid Research Inc. (TSE: DMX) today
announced that its wholly owned subsidiary, Dimethaid International Inc. has
entered into a standstill agreement with McNeil Consumer Healthcare, a wholly
owned subsidiary of Johnson & Johnson (NYSE: JNJ), for the US distribution
rights to Dimethaid's PENNSAID(R) Lotion, for which an undisclosed sum was
received.
The parties have agreed to negotiate exclusively with each other with the
intention of concluding a comprehensive distribution agreement. The agreement
will include terms under which McNeil Consumer Healthcare will purchase
PENNSAID(R) Lotion exclusively from Dimethaid International under a long term
arrangement.
''While we have had discussions with a number of interested parties, we
believe that McNeil is an ideal partner to market PENNSAID(R) Lotion in the
United States,'' said Rebecca Keeler, President and Chief Executive Officer of
Dimethaid Research Inc. ''They are a major pharmaceutical firm offering a
number of well-known arthritis and pain management products in the US. We
believe their in-depth knowledge of the arthritis market in the US will
benefit both companies when it comes to marketing PENNSAID(R) Lotion,'' Mrs.
Keeler said.
''Nearly one-in-six Americans, or 40 million people, have some form of
arthritis. It is the leading cause of disability in the US, costing their
economy approximately $65 billion per year in medical costs and lost wages.
PENNSAID(R) Lotion represents an exciting new option for osteoarthritis
patients for their treatment of pain. Its topical route of application will
help deliver pain relief where it is most needed. By focusing drug therapy in
this way, it offers the potential to reduce side effects often associated with
oral drug therapy.'' Mrs. Keeler added.
PENNSAID(R) Lotion is a topically applied, site-specific prescription
drug for the relief of pain associated with osteoarthritis. Upon receipt of
regulatory approval, PENNSAID(R) Lotion would be the only topical product
competing in the multi-billion dollar American osteoarthritis market, which
currently is served by selective and non-selective oral non-steroidal
anti-inflammatory drugs (NSAIDs).
Developed by two founding directors of the Company, Dimethaid's
transdermal delivery technology uses the intracellular membrane-bound tubules
to effectively penetrate directly through the skin to the site of pain.
Clinical studies suggest that PENNSAID(R) Lotion effectively treats
osteoarthritic pain on a site-specific basis without significant distribution
of the drug to the rest of the body. PENNSAID(R) Lotion was able to render
statistically significant pain relief, yet delivered approximately 150 times
less drug into the bloodstream than one tablet of an oral NSAID. This minimal
systemic absorption results in an excellent safety profile. There have been no
reported adverse gastrointestinal or renal events in an open, ongoing safety
study of over 3400 Canadian patients.
Dimethaid's strategy is to leverage its proprietary transdermal delivery
technology in numerous product offerings. The Company is working closely with
its Scientific Advisory Board to examine potential new uses of this technology
for other disease indications that are localized in the body, and where
systemic absorption of medication is neither necessary nor desirable. The
Company believes that the ability to effectively deliver drugs topically,
without the serious adverse events associated with systemic drug delivery,
represents a significant commercial opportunity.
Dimethaid International Inc. holds all non-Canadian commercial rights for
any product utilizing the Company's proprietary transdermal delivery
technology and is pursuing agreements for the marketing of PENNSAID(R) Lotion
in other geographic markets. Dimethaid Research Inc. is a pharmaceutical
company engaged in the development and commercialization of site-specific
therapeutic solutions that offer the potential to minimize the unwanted
systemic effects of drug therapy on the body.
For additional information on the Company, please visit
www.dimethaid.com. WARNING: The Company relies on litigation protection for
''forward-looking'' statements. |
