SAN DIEGO, July 14 /PRNewswire/ -- Dura Pharmaceuticals, Inc.
(Nasdaq: DURA) today announced that it has signed an agreement with American
Home Products Corporation (NYSE: AHP), through one of its affiliates, to
acquire exclusive U.S. marketing rights to the single-source tuberculosis drug
Myambutol(R) (ethambuthol hydrochloride) for $33.5 million plus additional
payments over the next four years based upon future net sales. As part of the
agreement, American Home Products will manufacture the products for Dura over
an extended period of time. The transaction is expected to close early next
month, and is subject to Federal Trade Commission review under the
Hart-Scott-Rodino Act.
Myambutol is an oral antibacterial agent used as first line therapy in the
treatment of pulmonary tuberculosis (TB) in conjunction with other TB
medications. Based on historical sales data, Dura estimates that first
full-year sales of the product could be $15 million - $17 million. The market
for TB drugs in the U.S. totaled $57 million in 1997.
Cam L. Garner, Dura's Chairman and CEO, stated, "We are continuing our
focus on proprietary, single-source respiratory products with the acquisition
of Myambutol. This product strengthens our TB franchise, presently consisting
of Seromycin(R) (cycloserine capsules, USP) and Capastat(R) Sulfate (sterile
capreomycin sulfate, USP). This is a particularly attractive segment of the
respiratory market, since TB treatments require minimal promotional effort.
"Strategically, Myambutol supports Dura's transition away from the Company's
older, promotion-sensitive products that have been posting declining sales, a
result of our shift in promotional efforts to newer patented products," noted
Mr. Garner. "Revenues from Myambutol will help to offset this decline and
facilitate continued investment in sales force expansion, creating a strong
platform from which to launch Albuterol Spiros(TM), the first Spiros(R)
product. As a result of this continued investment, Myambutol's contribution
to earnings is expected to be absorbed in 1998 and be slightly accretive in
1999."
"We remain highly confident in our ability to continue to execute our
acquisition strategy," stated Mr. Garner. "Following the Myambutol
acquisition, Dura holds in excess of $365 million in cash, and we continue to
aggressively pursue additional opportunities."
Dura Pharmaceuticals is a San Diego-based developer and marketer of
prescription pharmaceutical products for the treatment of allergies, asthma
and related respiratory conditions, and is developing a pulmonary drug
delivery system. Dura's mission is to be the leading pharmaceutical company
with a focus in the high-growth U.S. respiratory market. The Company is
pursuing that goal through two major strategies: (1) acquiring late-stage
prescription pharmaceuticals and/or companies with rights to such
pharmaceuticals for marketing to high-prescribing respiratory physicians and
(2) developing Spiros(R), a proprietary dry powder pulmonary drug delivery
system.
American Home Products is one of the world's largest research-based
pharmaceutical and health care products companies. It is a leader in the
discovery, development, manufacturing and marketing of prescription drugs and
over-the-counter medications. It is also a leader in vaccines, biotechnology,
agricultural products, and animal health care.
Except for the historical and factual information contained herein, the
matters discussed in this press release may contain forward-looking statements
which involve risks and uncertainties, including the timely development of
Spiros(R) products, uncertainties in the regulatory process, competitive
products and pricing, the ability of the Company to acquire products and/or
companies, the ability of the Company to add qualified sales representatives
in a timely manner, the Company's limited manufacturing experience,
seasonality, and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission. Actual results may
differ materially from those projected. These forward-looking statements
represent the Company's judgment as of the date of this release. The Company
disclaims, however, any intent or obligation to update these forward-looking
statements.
News releases from Dura Pharmaceuticals are available at no charge on
Dura's website at http://www.durapharm.com and through PR Newswire's On-Call fax
service by calling (800) 758-5804, extension 197051.
For information about American Home Products, contact: Douglas Petkus,
(610) 971-4980.
SOURCE Dura Pharmaceuticals, Inc.
 back to top
Related links:
http://www.durapharm.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 197051
CONTACT:
Mr. Cam L. Garner, Chairman and Chief
Executive Officer of Dura Pharmaceuticals, Inc., 619-457-2553
|
