SAN DIEGO, July 29 /PRNewswire/ -- Dura Pharmaceuticals, Inc.
(Nasdaq: DURA) today announced that it has entered into agreements with a
newly-formed private company, DJ Pharma, Inc. (DJ), for the co-promotion of
Dura's cough, cold and allergy line of products, the Rondec(R) product line
and Keftab(R) (cephalexin hydrochloride). In addition, Dura has granted to DJ
an option to acquire all such products.
DJ is a pharmaceutical company organized to market and sell patented and
branded generic prescription products to a highly targeted prescriber base
through a dedicated field sales force. During the co-promotion agreement, DJ
will receive a percentage of the product revenues in excess of an established
amount. Upon exercise of its option to purchase the products, DJ's principal
payment to Dura will be a pre-determined percentage of sales from the
co-promoted products over a four-year period of revenue and risk-sharing.
Dura has extended financing to DJ in the aggregate amount of $10 million, a
portion of which is convertible into securities of DJ. Dura expects that the
focused promotional effort provided by DJ will stabilize and improve the sales
and profitability levels for these promotion-sensitive products which would
otherwise continue to decline. Dura anticipates that the financial impact of
the agreements on 1998 and 1999 revenue and earnings will be neutral.
Cam L. Garner, Dura's Chairman and CEO, stated, "The agreements with DJ
provide Dura the opportunity to maximize our return on products that we no
longer actively promote, and to enhance our ability to remain focused on our
primary products, Ceclor(R) CD (cefaclor extended release tablets) and
Nasarel(R) (flunisolide) Nasal Solution 0.025%. In addition, this alliance
enables us to ready our expanded field sales force for the launch of the first
Spiros(R) product, Albuterol Spiros(TM), pending FDA approval, and improves
our capability to effectively market additional products, when acquired."
Mr. Garner noted that several executives previously employed by Dura will
be associated with DJ. James W. Newman, who has served as Dura's Senior Vice
President and Chief Financial Officer for over 6 years, will be DJ's President
and CEO. David Preston, who has served as Dura's Vice President, Marketing,
will be DJ's Vice President, Sales and Marketing. Walter Spath, formerly
Dura's Senior Vice President, Sales and Marketing, will serve on DJ's Board of
Directors along with Mr. Garner, who has been named Chairman.
Dura Pharmaceuticals is a San Diego-based developer and marketer of
prescription pharmaceutical products for the treatment of allergies, asthma
and related respiratory conditions. Dura's mission is to be the leading
pharmaceutical and drug delivery 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 for
marketing to high-prescribing respiratory physicians and (2) developing
Spiros(R), a proprietary dry powder pulmonary drug delivery system.
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 reliance on third parties,
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.
SOURCE Dura Pharmaceuticals, Inc.
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fax, 800-758-5804, ext. 197051
CONTACT:
Cam L. Garner, Chairman and Chief Executive
Officer of Dura Pharmaceuticals, Inc., 619-457-2553
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