Dura to Enter Another Specialty-Focused Market by Creating
A Dermatology Division
SAN DIEGO, Oct. 2 /PRNewswire/ -- Dura Pharmaceuticals, Inc. (Dura)
(Nasdaq: DURA) today announced that it has signed with Glaxo Wellcome, Inc., a
wholly-owned subsidiary of Glaxo Wellcome, plc (Glaxo) (NYSE: GLX), an
exclusive U.S. distribution agreement with a purchase option for Glaxo's
dermatological product line, consisting of Cutivate(R) (fluticasone
propionate), Temovate(R) (clobetasol propionate), Aclovate(R) (alclometasone
dipropionate), Oxistat(R) (oxiconazole nitrate) and Emgel(R) (erythromycin) in
all current sizes, strengths and formulations. The five dermatology products
in 1999 competed in the U.S. market of over $1.4 billion.
Under the distribution agreement, Glaxo will be responsible for
manufacture and supply of the products for Dura, and Dura will make annual
payments in 2001 and 2002 to Glaxo. At the end of 2002, Dura can exercise an
option to acquire all of the products at a predetermined multiple of 2002
sales, subject to specified minimum and maximum amounts. If the option to
purchase the products is exercised, Dura will also assume responsibility for
manufacture and supply of the products.
"The acquisition of distribution rights to these dermatology products fits
our strategy perfectly," stated Cam L. Garner, Dura's Chairman and CEO. "They
participate in a selected therapeutic area where we can be very competitive
without substantial increases in selling infrastructure. We expect the
addition of these products to our portfolio to be slightly accretive to
earnings in the fourth quarter of this year and to contribute significantly to
earnings in 2001 and beyond, adding to our previously communicated goal of
growing annual earnings in the low-to-mid 20% range. Strategically, the
acquisition of the rights for these products and the creation of a Dura
Dermatology Division provides us with access to another specialty-focused
market to leverage by acquiring additional products. We are pleased to be a
partner of Glaxo Wellcome, and as in our other collaborations, would look to
expand the relationship as opportunities allow."
"Effective immediately, Dura is responsible for the sales and marketing of
these five products," added Robert S. Whitehead, Dura's President and COO.
"Similar to our successful expansion into the hospital market, we plan to
expeditiously build an experienced Dura Dermatology Division to personally
promote the product line starting in the fourth quarter of this year.
Beginning immediately, we will employ a variety of promotional initiatives to
promote and sample the product line. We plan for our Dermatology Division to
include approximately 75 sales and marketing professionals focused on
approximately 5,000 dermatologists responsible for the majority of the
prescriptions."
Dura will host a conference call on Monday, October 2nd at 1:30p.m.
Eastern Daylight Time to elaborate on this press release. To access the call,
please dial (212)346-0130. A replay will be available for one week and can be
accessed by dialing (800)633-8284 with passcode 1652-5817. To access the
webcast replay, available one hour after the call, please visit StreetFusion
at
http://www.streetfusion.com/Marketing/Public/Replay.asp?APTab=Special+Events
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. Dura also intends, through the use of
collaborative relationships, to develop the Spiros(R) motorized blisterdisk
and Spiros(R) S2 pulmonary drug delivery systems for the local and systemic
delivery of a wide range of medications. On September 11, 2000, Dura and Elan
Corporation, plc (Elan) (NYSE: ELN) announced the signing of a definitive
merger agreement for Elan to acquire Dura. The merger is pending regulatory
and Dura shareholder approval.
Glaxo Wellcome, Inc. is a research-based company whose people are
committed to fighting disease by bringing innovative medicines and services to
patients throughout the world and to healthcare providers who serve them.
Cutivate(R), Aclovate(R), Temovate(R), Oxistat(R) and Emgel(R) are trademarks
of the Glaxo Wellcome group of companies.
Except for the historical and factual information contained herein, the
matters discussed in this press release may contain forward-looking statements
including targets, estimates, plans, expectations, goals and projections,
which involve risks and uncertainties, including Dura's ability to complete
its merger with Elan, Dura's ability to execute its refocused strategy, risks
associated with the creation and successful operation of a to-be-formed
dermatology division, the effectiveness of Dura's sales forces in promoting
its products, Dura's success in acquiring additional products, risks
associated with the successful development and commercialization of the
inhaled insulin product candidate and Dura's Spiros(R) S2 technology, 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.
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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