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Biotech / Medical : Drug Royalty Corporation (DRI-TSE) -- Ignore unavailable to you. Want to Upgrade?

To: philip trigiani who wrote (76)	2/11/1999 7:49:00 PM
From: philip trigiani	Read Replies (1) \| Respond to of 96

=================================================================== Canadian Corporate News --- Hot Off The Wire News Release for DRUG ROYALTY CORPORATION INC. =================================================================== ------------------------------------------------------------------- E*TRADE Canada Don't make your investment decisions site unseen. Sign-up for a free trial membership: www2.cdn-news.com Someday we'll all invest this way. ------------------------------------------------------------------- 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. -30- 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 -0- =================================================================== You may change your service options at anytime by visiting: cdn-news.com ===================================================================