Thursday March 30, 3:30 pm Eastern Time
Company Press Release
SOURCE: Gum Tech International, Inc.
Gum Tech Announces Zicam(TM) Allergy Relief
PHOENIX, March 30 /PRNewswire/ -- Gum Tech International, Inc., (Nasdaq: GUMM - news) announced today that Gel Tech LLC, its joint venture with BioDelivery Technologies, Inc., has developed Zicam(TM) Allergy Relief, a homeopathic nasal gel designed to provide temporary relief of allergy symptoms due to allergic rhinitis (hay fever). The product is being introduced this week at an ECRM Cough/Cold and Analgesics Trade Conference in West Palm Beach, Florida.
``We are very pleased to be introducing a new product so soon after launching Zicam(TM) Cold Remedy last fall,' said Brown Russell, Chairman of the Board of Gum Tech. ``Zicam(TM) Allergy Relief represents a tremendous opportunity to extend the Zicam brand to another sizable market. More than 35 million people suffer from seasonal allergic rhinitis, and they spend more than $2.5 billion dollars a year on allergy medications.'
Zicam(TM) Cold Remedy, a homeopathic nasal gel, has been shown in two separate double-blind placebo based studies to significantly reduce the duration and severity of the common cold. Mr. Russell noted that initial demand for Zicam(TM) Cold Remedy was very strong following widespread national publicity due to a comprehensive marketing campaign launched on November 1, 1999. Within a few weeks the Company was in a back order situation that was not completely alleviated until mid-January 2000.
``We are very pleased with our launch of Zicam(TM) Cold Remedy this cold season. Although we did not begin our marketing campaign until November and were in a back order situation from November until mid-January, Zicam(TM) Cold Remedy was among the top selling products in the cough & cold category this cold season. The delay in keeping product fully stocked on the shelves in December, coupled with a very short cold season, which peaked in early January and declined much more rapidly than normal in January, February and March, limited our ability to fully realize during the 1999-2000 cold season what we believe is the significant market potential of Zicam(TM) Cold Remedy. The very short cold season in particular limited the level of reorders during the first quarter.'
Mr. Russell continued, ``Overall, we are extremely pleased with how far we have come in just five months. The bottom line is that Zicam(TM) Cold Remedy is effective in reducing the severity and duration of the common cold, it represents a significant breakthrough in the cold remedy market, we secured widespread distribution of the product, and it achieved widespread acceptance by consumers. We believe we are well positioned as we begin even now to prepare for next season.'
Mr. Russell continued, ``We believe Zicam(TM) Allergy Relief has the potential to build on the success of Zicam(TM) Cold Remedy. Initial interest from the retail chains is very high, based on the success of Zicam(TM) Cold Remedy. We anticipate Zicam(TM) Allergy Relief will achieve the same level of retail distribution as Zicam(TM) Cold Remedy. We have already received initial orders and anticipate beginning shipments in the next two weeks.'
Zicam(TM) Cold Remedy and Allergy Relief are developed by Gel Tech, LLC, a joint venture between Gum Tech International, Inc., (Nasdaq: GUMM - news) 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) Cold Remedy 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.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the anticipated demand for Zicam(TM) Cold Remedy and Zicam(TM) Allergy Relief at the retail and consumer level, continued favorable customer response for Zicam(TM) Cold Remedy and a similar response expected for Zicam(TM) Allergy Relief, anticipated sales of Zicam(TM) Cold Remedy in the future, particularly with respect to the next cough and cold season, the timing and success expected from the anticipated launch of Zicam(TM) Allergy Relief, and the Company's ability to achieve widespread distribution and market acceptance for this new product. 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 these forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations include a decrease in demand for Zicam(TM) Cold Remedy in the future, the inability to achieve widespread distribution of or the lack of market acceptance for Zicam(TM) Allergy Relief, the inability to accurately anticipate demand for products that are highly seasonal, which may result in delayed shipments if demand is greater than anticipated or in excess inventories if demand is less than anticipated, the Company's ability to produce sufficient quantities of Zicam(TM) Cold Remedy and Zicam(TM) Allergy Relief to meet current and anticipated demand, which could result in lower sales of these products, the inability to establish or support the efficacy of the claims made by the Company regarding the use of Zicam(TM) Cold Remedy and Zicam(TM) Allergy Relief, and the potential costs and delays associated with defending the patent infringement claim against Gel Tech seeking to prevent future sales of Zicam, which could divert the attention of management from ordinary business operations.
SOURCE: Gum Tech International, Inc.
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