SAN DIEGO, Dec. 22 /PRNewswire/ -- Dura Pharmaceuticals, Inc.
(Nasdaq: DURA) (Dura) today announced that it has signed an agreement for
exclusive U.S. distribution rights for the patented hospital antibiotic
products Maxipime(R) IV/IM (cefepime HCl) and Azactam(R) IV/IM (aztreonam)
from Bristol-Myers Squibb Company (NYSE: BMY) for an initial payment of
$60 million, a payment of $70 million due in 2003 and additional contingent
payment amounts. In addition, the companies have entered into a transitional
co-promotion agreement in which Bristol-Myers Squibb will dedicate a hospital
sales force to promote the products in 1999. The transaction will be
effective January 1, 1999. Bristol-Myers Squibb will be responsible for the
manufacture and supply of the products for Dura. Dura expects that
Maxipime(R) and Azactam(R) could generate combined sales of $60 - $65 million
in 1999. The market for intravenous (IV) antibiotics in the U.S. totaled
approximately $1.4 billion in 1997.
"With the potential for peak annual combined revenues to be more than
twice our first year expectations, Maxipime(R) and Azactam(R) are
strategically and financially significant for Dura," said Cam L. Garner,
Dura's Chairman and CEO. "They support our respiratory-focused business
strategy while funding our expansion into the hospital market, which offers
substantial opportunity for additional product acquisitions and represents an
important distribution channel for our Spiros(R) products, pending FDA
approval. Importantly, these products will not detract from our promotional
efforts that have provided solid growth momentum for Ceclor(R) CD (cefaclor
extended release tablets) and Nasarel(R) (flunisolide). Indeed, they allow us
to apply our expertise and knowledge base of antibiotic therapies and
respiratory infection to the hospital market, as the products are indicated in
part for acute respiratory infection such as pneumonia, the most frequently
treated hospital infection."
In addition to the strategic fit of the products, Dura expects Maxipime(R)
and Azactam(R) to have positive financial impact. "In 1999, we expect that
the products will be mildly accretive to earnings as we will simultaneously
co-promote the products with Bristol-Myers Squibb and invest in building our
own hospital sales force. Sales of Maxipime(R) and Azactam(R) in the year
2000 will support our goal to deliver 35% growth in earnings-per-share, even
if major pre-launch or launch expenses are incurred for our Spiros(R) products
during that time," said Mr. Garner.
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.
Bristol-Myers Squibb is a diversified worldwide health and personal care
company whose principal businesses are pharmaceuticals, consumer medicines,
beauty care, nutritionals and medical devices. It is a leading maker of
innovative therapies for cardiovascular, metabolic and infectious diseases,
central nervous and dermatological disorders, and cancer. The company is a
leader in consumer medicines, orthopaedic devices, ostomy care, wound
management, nutritional supplements, infant formulas, and hair and skin care
products.
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 market conditions,
competitive products and pricing, seasonality, the ability of the Company to
add qualified sales representatives in a timely manner, the timely
establishment of a hospital sales force, the timely development of the
Spiros(R) system, the timely receipt of FDA approval of Spiros(R) products, if
at all, Dura's limited manufacturing experience, dependency upon third parties
and their successful development efforts 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. Any
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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Company News On-Call:
http://www.prnewswire.com/comp/197051.html or fax,
800-758-5804, ext. 197051
CONTACT:
Cam L. Garner, Chairman and CEO of Dura
Pharmaceuticals, Inc., 619-457-2553
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