Dura Will Leverage Its Sales and Marketing Strengths for Growth and Redirect
Its Research and Development Focus to Actively Pursue
Collaborative Relationships
SAN DIEGO, July 24 /PRNewswire/ -- Dura Pharmaceuticals, Inc. (Dura)
(Nasdaq: DURA) today announced implementation of a refocused growth strategy
to enhance stockholder value. The Company will capitalize upon its strengths
in sales and marketing to increase pharmaceutical product revenues and
substantially reduce and focus its research and development spending. Dura
expects this strategy to positively impact near-term earnings and to position
the Company to achieve annual earnings growth moving forward on its core
existing business, excluding acquisitions, in the low-to-mid 20% range.
Dura's strategic objective is to continue to grow its core business,
driven principally by its commercial operations. Dura will continue to
leverage its sales and marketing strengths within specialty-focused markets to
both grow its existing products and to position Dura to aggressively pursue
and acquire additional marketed products. In addition, Dura will immediately
reduce overall development spending substantially while increasing its
commitment to (a) its collaboration with Eli Lilly & Company (Eli Lilly)
(NYSE: LLY) on the inhaled insulin program using the Spiros(R) blisterdisk
drug delivery system and (b) establishing collaborative relationships to
develop next generation, motorless Spiros(R) S2 systems, which are designed to
be smaller, lighter and significantly less costly to manufacture. Near term,
Dura plans to commit a targeted and adequate level of funding to the Spiros(R)
S2 development program while it seeks to successfully attract collaborators to
complete development. Dura anticipates that future spending on development of
the Spiros(R) S2 systems will be pursued only through collaborative
partnerships.
As part of the strategy to enhance stockholder value, Dura will, upon the
successful acquisition of Spiros Development Corporation II, Inc. (SDCII)
(Nasdaq: SDCO), discontinue the development of all motorized Spiros(R)
cassette programs, including Beclomethasone Spiros(TM) and Budesonide
Spiros(TM). The decision to terminate these programs is based on the
significant advancements in the new Spiros(R) S2 technology platform, the
substantial costs to complete the cassette programs and the normal clinical
and regulatory risks associated with pharmaceutical product development, all
weighed against the Company's assessment of the growing, but highly
competitive U.S. oral inhaled steroid market in 2002 and beyond, when these
product candidates were targeted to reach the market. Upon completion of the
SDCII acquisition, David S. Kabakoff, Ph.D., President and Chief Executive
Officer of SDCII and President of Dura Technologies, plans to leave Dura to
pursue other interests. Lloyd E. Flanders, Ph.D., currently Senior Vice
President, Program Management and Research and Development Planning will
assume the new role of Senior Vice President, Technology Operations.
"Given the proven performance of our sales and marketing organization, our
strong commercial operations leadership team will continue to focus on
increasing revenues and profitability in our core business," stated Robert S.
Whitehead, Dura's President and Chief Operating Officer. "We now have the
exciting challenge of managing six patented products in our specialty-focused
promoted product portfolio. Maxipime(R) and Azactam(R) have established us as
a player in the hospital products market and we've been able to leverage our
primary care expertise through our newest alliance with Allergan, Inc.
(NYSE: AGN). We've become very adept at acquiring and successfully
integrating products and we will intensify our efforts to continue to do so."
"The Spiros(R) S2 technology has potential for use worldwide with a broad
variety of molecules, including proteins and peptides," explained Cam L.
Garner, Dura's Chairman and Chief Executive Officer. "It presents an
attractive cost structure for both U.S. and international markets. We are
excited by the initial interest expressed by potential collaborative partners
to commercialize products using the Spiros(R) S2 system. We will redirect
associates from the motorized cassette programs to our inhaled insulin project
with our collaborative partner, Eli Lilly, utilizing the motorized Spiros(R)
blisterdisk system. By focusing our efforts on the inhaled insulin and
Spiros(R) S2 programs, Dura will establish itself as the 'partner of choice'
for delivery of drugs through or to the lungs."
James A. Harper, President, Diabetes and Growth Disorders Products, Eli
Lilly commented, "We are enthusiastic about the additional resources
reallocated by Dura to the inhaled insulin project which will benefit the
development of this novel technology. We continue to believe that our
collaboration with Dura will provide the opportunity to introduce an
innovative pulmonary delivery system for people with diabetes."
Dura will have a conference call at 8:30 a.m. Eastern Time on Tuesday,
July 25, 2000. To access the webcast replay, available one hour after the
call, please visit StreetFusion at
http://www.streetfusion.com/Marketing/Public/Replay.asp?APTab=Live and enter
our ticker symbol, DURA.
Dura Pharmaceuticals, Inc. is a San Diego based specialty pharmaceutical
company that markets and sells prescription products that treat infectious and
respiratory diseases. Dura focuses on products and transactions that leverage
its sales and marketing organization. Also, through the use of collaborative
relationships, Dura intends to develop the Spiros(R) blisterdisk and Spiros(R)
S2 pulmonary drug delivery systems for the local and systemic delivery of a
wide range of medications.
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 effectiveness of Dura's
sales forces in promoting products, Dura's ability to acquire marketed
products, risks associated with the successful development and
commercialization of the inhaled insulin product candidate and Dura's
Spiros(R) S2 technology, Dura's dependence on third parties for manufacturing
and development, the competitiveness of the pharmaceutical industry, the
successful completion of the merger with Spiros Development Corporation II,
Inc. and other risks detailed from time to time in Dura's filings with the
Securities and Exchange Commission. Actual results may differ materially from
those projected, including future growth in product sales and earnings. Any
forward-looking statements represent Dura's judgment as of the time and date
of this release. Dura disclaims, however, any intent or obligation to update
any such forward-looking statements. Further information about Dura
Pharmaceuticals, Inc. can be found at http://www.durapharm.com.
News releases from Dura Pharmaceuticals are available at no charge on Dura's
web site at http://www.durapharm.com and through PR Newswire's On-Call fax service by
calling (800) 758-5804, extension 197051.
A separate press release was issued today entitled,
"Dura Pharmaceuticals Announces a 24% Increase in Year-Over-Year Earnings for
the Second Quarter of 2000."
SOURCE Dura Pharmaceuticals, Inc.
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Related links:
http://www.durapharm.com
Company News On-Call:
http://www.prnewswire.com/comp/197051.html or fax,
800-758-5804, ext. 197051
CONTACT:
Michael T. Borer, Senior Vice President and
Chief Financial Officer of Dura Pharmaceuticals, Inc.,
858-457-2553
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