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Biotech / Medical : GUMM - Eliminate the Common Cold -- Ignore unavailable to you. Want to Upgrade?


To: DanZ who wrote (2151)2/1/2000 11:28:00 AM
From: pz  Respond to of 5582
 
Independent Clinical Study Confirms Initial Findings on Revolutionary OTC Cold Remedy
PR Newswire - February 01, 2000 10:57

Zicam Nasal Gel Reduced the Duration of the Common Cold by an Average of 78%

WOODLAND HILLS, Calif., Feb. 1 /PRNewswire/ -- Gel Tech LLC, a joint venture between Gum Tech International, Inc., (Nasdaq: GUMM) and BioDelivery Technologies, Inc., today announced the results of the first independent scientific study on Zicam(TM), an over-the-counter homeopathic cold remedy. Results from the clinical research, conducted by lead investigator Dr. Michael Hirt, a graduate of Harvard Medical School and a clinical faculty member at UCLA, confirm the previously announced findings of the company's initial internal study. According to the independent study, Zicam(TM), a proprietary nasal gel, reduced the duration of the common cold by an average of 78% when taken at the onset.

"Gel Tech had conducted an internal study which demonstrated a substantial improvement in patients using Zicam(TM). As an independent researcher, I wanted to see if the results could be duplicated. We conducted a double blind placebo controlled independent study, much like the government requires of drug companies when they are testing drugs," said Dr. Hirt. "Those patients taking Zicam(TM) resolved their symptoms an average of 78% faster than those patients receiving the placebo. There was quite a substantial difference in terms of how quickly people felt better about their symptoms."

"We're obviously very excited about the results from this first independent study," said Brown Russell, Chairman of Gum Tech's Board of Directors. "The study substantiates what we have believed about the product all along, that Zicam(TM) significantly reduces the duration and severity of the common cold. Of course, we plan on continuing clinical research on the product's efficacy."

Zicam(TM) was specifically designed to significantly reduce the duration and severity of the common cold, including nasal congestion, sneezing, coughing, and sore throat. Colds are generally caused when viruses bind with the ICAM-1 receptor sites on cells lining the nasal cavity. Scientists hypothesize that ionic zinc may fill grooves or canyons on the cold-causing viruses, inhibiting or blocking the virus's ability to bind to the receptor sites and interrupting the infection cycle. Zicam(TM) uses a proprietary gel matrix to apply an emulsification of ionic zinc, known as Zinullose(TM), directly to the nasal cavity.

"The study is being written up and will be submitted for publication. The study was conducted according to the highest standards and represents good, quality research, which I hope will be recognized by publication," concluded Dr. Hirt.

Zicam(TM) is developed by Gel Tech, LLC, a joint venture between Gum Tech International, Inc., (Nasdaq: GUMM) a publicly held company located in Phoenix, AZ and BioDelivery Technologies, Inc., a privately held biotechnology company. Gum Tech and BDT are devoted to the development of unique systems for delivering bioactive compounds.

Zicam(TM) is currently available at more than 50,000 drug stores, grocery stores, pharmacies, mass merchants, club stores and convenience stores nationwide. For more information, call 1-877-942-2626 or log onto www.zicam.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 the company's anticipated growth in business and future results of operations. These forward-looking statements are based on the company's expectations and are subject to a number of risks and uncertainties, many of which cannot be predicted or quantified and are beyond the company'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 the company's expectations include unfavorable results from other clinical trials regarding the efficacy of Zicam(TM), uncertainties concerning the efficacy of Zicam(TM), failure of any clinical study to be accepted for publication, lack of market acceptance for Zicam(TM), possible litigation involving product liabilities and consumers issues. Other factors that could cause actual results to differ materially from the company's expectations are described in the company's reports filed pursuant to the Securities Exchange Act of 1934.

SOURCE Gum Tech International, Inc.



To: DanZ who wrote (2151)2/1/2000 11:29:00 AM
From: pz  Read Replies (1) | Respond to of 5582
 
Gum Tech International Reports Profitable Fourth Quarter, Nets Thirteen Cents a Share
PR Newswire - February 01, 2000 10:58

First Profitable Quarter Due to Increased Zicam Sales

PHOENIX, Feb. 1 /PRNewswire/ -- Gum Tech International, Inc. (Nasdaq: GUMM) reported consolidated fourth quarter net sales of $8.9 million, almost 400% greater than third quarter 1999. Net sales for Zicam(TM) totaled $8 million. The company earned 13 cents a share (unaudited) based on 8.8 million shares on a fully diluted basis.

According to William Hemelt, Gum Tech's Chief Financial Officer, "The demand for Zicam(TM) during the quarter was tremendous after our formal launch on November 1, 1999. Two months after the launch, according to sales data, Zicam(TM) was in the top 2% of the cough and cold category. We are pleased with our initial success, which was achieved without the benefit of a major marketing campaign. To generate increased sales, we plan to aggressively market Zicam(TM) with a major marketing campaign. The campaign began January 31, 2000, and will run for the remainder of the cold season. We also plan on beginning international distribution in the near future."

Hemelt continued, "Our earnings would have been higher, but we incurred some one-time non-cash charges associated with redeeming a good portion of our debt with Citadel. Our gross margin on Zicam(TM) remained high. We were also able to keep operating expenses to a minimum, since our successful PR launch mitigated the need for extensive advertising during the period."

"Scientific support for Zicam(TM)'s unparalleled ability to reduce the duration and severity of the common cold continues to grow," Hemelt concluded, noting that results from a recent independent clinical study (released February 1, 2000) confirm the initial findings of internal clinical research on Zicam(TM).

Gum Tech specializes in the development of unique and innovative systems for the delivery of bioactive compounds, particularly in the area of functional chewing gums. In addition, Gum Tech is 60% owner of Gel Tech LLC, a joint venture between Gum Tech and BioDelivery Technologies, Inc. Gel Tech LLC owns and markets Zicam(TM), a homeopathic remedy for the common cold.

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 the company's anticipated growth in business and future results of operations. These forward-looking statements are based on the company's expectations and are subject to a number of risks and uncertainties, many of which cannot be predicted or quantified and are beyond the company'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 the company's expectations include unfavorable results from clinical trials regarding the efficacy of Zicam(TM), uncertainties concerning the efficacy of Zicam(TM), lack of market acceptance for Zicam(TM), the inability of the company to generate additional sales based upon planned marketing campaigns, a decrease in the level of reorders from existing customers, financial difficulties encountered by one or more of the company's principal customers, difficulties in obtaining additional capital for marketing, research and development, and other expenses, the possibility of material charges incurred as a result of prior activities, aggressive pricing and marketing efforts by competitors, unavailability of third-party material products at reasonable prices, inventory obsolescence due to shifts in market demand, and possible litigation involving product liabilities and consumers issues. There can be no assurance that sales of Zicam(TM) will continue to grow, particularly in view of the company's plan to pursue a major marketing campaign, or that the company can maintain profitability, especially after the cold season. Other factors that could cause actual results to differ materially from the company's expectations are described in the company's reports filed pursuant to the Securities Exchange Act of 1934.

SOURCE Gum Tech International, Inc.